Safe and Sound

WEST YORK AREA SCHOOL DIST EM

York, PA
3
Star Rating
Started in 1965, WEST YORK AREA SCHOOL DIST EM is an NCUA-insured credit union based in York, PA. As of December 31, 2017, the credit union held assets of $5.2 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $1.9 million. Its 1,058 members currently have $4.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEST YORK AREA SCHOOL DIST EM 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 faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

WEST YORK AREA SCHOOL DIST EM scored below the national average of 15.65 on our test to measure capital adequacy, racking up 6 out of a possible 30 points.

WEST YORK AREA SCHOOL DIST EM's capitalization ratio of 6.00 percent in our test was worse than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets could eventually have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

WEST YORK AREA SCHOOL DIST EM scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

WEST YORK AREA SCHOOL DIST EM did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

WEST YORK AREA SCHOOL DIST EM had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's doing better than 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.