Safe and Sound

WAWA EMPLOYEES

Media, PA
3
Star Rating
WAWA EMPLOYEES is an NCUA-insured credit union founded in 1976 and currently headquartered in Media, PA. Regulatory filings show the credit union having $16.5 million in assets, as of December 31, 2017.

Members have $5.7 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.7 million. Its 5,359 members currently have $14.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WAWA EMPLOYEES 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 important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during periods of economic instability for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, WAWA EMPLOYEES received a score of 8 out of a possible 30 points, below the national average of 15.65.

WAWA EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a future failure.

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

WAWA EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn 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 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.

WAWA EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

WAWA EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.