Safe and Sound

W T COMMUNITY

CINCINNATI, OH
3
Star Rating
CINCINNATI, OH-based W T COMMUNITY is an NCUA-insured credit union started in 1956. Regulatory filings show the credit union having $4.9 million in assets, as of December 31, 2017.

The credit union has amassed loans and leases worth $4.5 million. W T COMMUNITY's 966 members currently have $3.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, W T COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is key. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, W T COMMUNITY received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

W T COMMUNITY's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb losses, decreasing its buffer of equity. 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, resulting in reduced earnings and potentially more risk of a failure in the future.

W T COMMUNITY scored 32 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

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

A credit union's profitability has an effect on 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 able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

W T COMMUNITY scored 14 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One indication that the credit union 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.