Safe and Sound

WEPAWAUG-FLAGG

HAMDEN, CT
3
Star Rating
WEPAWAUG-FLAGG is an NCUA-insured credit union started in 1936 and currently headquartered in HAMDEN, CT. The credit union has assets of $113.3 million, according to December 31, 2017, regulatory filings.

Members have $43.4 million on deposit tended by 21 full-time employees. With that footprint, the credit union holds loans and leases worth $43.4 million. WEPAWAUG-FLAGG's 12,890 members currently have $100.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEPAWAUG-FLAGG exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is key. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. 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, WEPAWAUG-FLAGG received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

WEPAWAUG-FLAGG appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, decreasing its buffer 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, diminishing earnings and elevating the risk of a future failure.

WEPAWAUG-FLAGG scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to 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, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

WEPAWAUG-FLAGG scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One sign that WEPAWAUG-FLAGG is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.