Safe and Sound

PRESTO LEWISTON EMPLOYEES

Lewiston, UT
5
Star Rating
PRESTO LEWISTON EMPLOYEES is an NCUA-insured credit union founded in 1977 and currently headquartered in Lewiston, UT. As of December 31, 2017, the credit union held assets of $325,892.

The credit union has amassed loans and leases worth $267,181. PRESTO LEWISTON EMPLOYEES's 152 members currently have $237,540 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PRESTO LEWISTON EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. Therefore, an institution's level of capital is an essential measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, PRESTO LEWISTON EMPLOYEES scored 30 out of a possible 30 points, beating the national average of 15.65.

PRESTO LEWISTON EMPLOYEES's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, diminishing 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, diminishing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, PRESTO LEWISTON EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may 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 shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

PRESTO LEWISTON EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One sign that PRESTO LEWISTON EMPLOYEES is beating 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.