Safe and Sound

METRO WIRE

PLAINS, PA
3
Star Rating
PLAINS, PA-based METRO WIRE is an NCUA-insured credit union founded in 1977. Regulatory filings show the credit union having assets of $4.5 million, as of December 31, 2017.

METRO WIRE's 463 members currently have $3.9 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $828,271.

Overall, Bankrate believes that, as of December 31, 2017, METRO WIRE 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 important criteria Bankrate used to score U.S. credit unions.

WHAT IS
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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is key. From a safety and soundness perspective, the more capital, the better.

METRO WIRE exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 16 out of a possible 30 points.

METRO WIRE had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

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

Having lots of these kinds of assets means a credit union may eventually have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a failure in the future.

METRO WIRE scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

METRO WIRE scored 2 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.