Safe and Sound

WEBSTER

WEBSTER, NY
2
Star Rating
WEBSTER is a WEBSTER, NY-based, NCUA-insured credit union that opened its doors in 1964. The credit union has $15.5 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 4 full-time employees, the credit union currently holds loans and leases worth $10.1 million. WEBSTER's 2,490 members currently have $14.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEBSTER exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, WEBSTER received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

WEBSTER appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. 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, decreasing earnings and elevating the chances of a future failure.

WEBSTER came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

WEBSTER's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

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

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.