Safe and Sound

WESTCONSIN

MENOMONIE, WI
5
Star Rating
WESTCONSIN is a MENOMONIE, WI-based, NCUA-insured credit union dating back to 1939. The credit union has assets of $1.19 billion, according to December 31, 2017, regulatory filings.

With 315 full-time employees, the credit union holds loans and leases worth $925.2 million. Its 90,329 members currently have $1.03 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WESTCONSIN exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is key. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, WESTCONSIN received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

WESTCONSIN had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

This test's purpose is to estimate 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.

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

WESTCONSIN scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

Troubled assets made up 0.00 percent of WESTCONSIN's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

WESTCONSIN outperformed the average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One indication that the credit union 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.