Safe and Sound

JAY BEE EMPLOYEES

WALNUTPORT, PA
4
Star Rating
JAY BEE EMPLOYEES is a WALNUTPORT, PA-based, NCUA-insured credit union dating back to 1962. As of December 31, 2017, the credit union held assets of $1.4 million.

The credit union currently holds loans and leases worth $603,180. JAY BEE EMPLOYEES's 279 members currently have $1.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JAY BEE EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. Therefore, a credit union's level of capital is a valuable measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

JAY BEE EMPLOYEES scored 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

JAY BEE EMPLOYEES's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a failure in the future.

JAY BEE EMPLOYEES scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, JAY BEE EMPLOYEES scored 0 out of a possible 30, failing to reach the national average of 10.11.

One sign that JAY BEE EMPLOYEES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.