Safe and Sound

SWEETWATER

ROCK SPRINGS, WY
4
Star Rating
SWEETWATER is an NCUA-insured credit union founded in 1960 and currently based in ROCK SPRINGS, WY. The credit union has $22.4 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $5.6 million. SWEETWATER's 2,137 members currently have $19.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SWEETWATER exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, SWEETWATER racked up 16 out of a possible 30 points, better than the national average of 15.65.

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

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, SWEETWATER scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-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 has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, SWEETWATER scored 0 out of a possible 30, less than the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.