Safe and Sound

WEE

PARKERSBURG, WV
4
Star Rating
Started in 1961, WEE is an NCUA-insured credit union based in PARKERSBURG, WV. Regulatory filings show the credit union having $19.0 million in assets, as of December 31, 2017.

Thanks to the efforts of 5 full-time employees, the credit union holds loans and leases worth $7.0 million. WEE's 1,840 members currently have $16.8 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during times of financial instability for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial resilience. From a safety and soundness perspective, more capital is preferred.

WEE received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

WEE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

WEE scored 36 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 problem 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 making money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

WEE scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One indication that WEE 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.