Safe and Sound

WESTBY CO-OP

WESTBY, WI
5
Star Rating
WESTBY, WI-based WESTBY CO-OP is an NCUA-insured credit union started in 1939. The credit union has $474.5 million in assets, according to December 31, 2017, regulatory filings.

Members have $382.8 million on deposit tended by 125 full-time employees. With that footprint, the credit union currently holds loans and leases worth $382.8 million. Its 31,910 members currently have $390.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WESTBY CO-OP exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, more capital is preferred.

WESTBY CO-OP scored 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

WESTBY CO-OP appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 24.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, WESTBY CO-OP scored 40 out of a possible 40 points, above the national average of 38.09 points.

WESTBY CO-OP's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

WESTBY CO-OP exceeded the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

One indication that WESTBY CO-OP 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.