Safe and Sound

WELD SCHOOLS

GREELEY, CO
4
Star Rating
Started in 1936, WELD SCHOOLS is an NCUA-insured credit union headquartered in GREELEY, CO. The credit union holds assets of $74.0 million, according to December 31, 2017, regulatory filings.

Members have $35.9 million on deposit tended by 19 full-time employees. With that footprint, the credit union has amassed loans and leases worth $35.9 million. WELD SCHOOLS's 5,715 members currently have $67.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WELD SCHOOLS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When it comes to safety and soundness, more capital is preferred.

WELD SCHOOLS came in below the national average of 15.65 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

WELD SCHOOLS's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

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 lots of these kinds of assets means a credit union may have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, WELD SCHOOLS scored 40 out of a possible 40 points, above the national average of 38.09 points.

A below-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

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

WELD SCHOOLS scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One indication that WELD SCHOOLS is running ahead of 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.