Safe and Sound

W-BEE

Wilkes Barre, PA
3
Star Rating
W-BEE is an NCUA-insured credit union started in 1938 and currently based in Wilkes Barre, PA. The credit union holds $38.1 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $5.3 million. W-BEE's 1,528 members currently have $35.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, W-BEE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure capital adequacy, W-BEE received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

W-BEE had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets means a credit union may eventually have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

W-BEE scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

W-BEE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.