Safe and Sound

DAY-MET

Dayton, OH
3
Star Rating
Dayton, OH-based DAY-MET is an NCUA-insured credit union founded in 1957. As of December 31, 2017, the credit union held assets of $92.2 million.

Thanks to the work of 23 full-time employees, the credit union holds loans and leases worth $70.1 million. DAY-MET's 9,009 members currently have $81.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DAY-MET exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is essential. When looking at safety and soundness, more capital is preferred.

DAY-MET received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

DAY-MET appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid loans.

A credit union with lots of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a future failure.

DAY-MET came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

DAY-MET's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, DAY-MET scored 4 out of a possible 30, less than the national average of 10.11.

DAY-MET had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's running ahead of its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.