Safe and Sound

PERU

PERU, NY
5
Star Rating
PERU is an NCUA-insured credit union founded in 1963 and currently headquartered in PERU, NY. The credit union has assets of $18.4 million, according to December 31, 2017, regulatory filings.

Members have $10.8 million on deposit tended by 7 full-time employees. With that footprint, the credit union has amassed loans and leases worth $10.8 million. PERU's 2,457 members currently have $15.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PERU exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, PERU achieved a score of 22 out of a possible 30 points, beating the national average of 15.65.

PERU had a capitalization ratio of 22.00 percent in our test, above 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 loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets means a credit union could eventually have to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

PERU scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, PERU scored 8 out of a possible 30, less than the national average of 10.11.

One sign that PERU 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.