Safe and Sound

WESTSIDE COMMUNITY

CHURCHVILLE, NY
3
Star Rating
Started in 1962, WESTSIDE COMMUNITY is an NCUA-insured credit union based in CHURCHVILLE, NY. The credit union holds assets of $16.6 million, according to December 31, 2017, regulatory filings.

Members have $8.7 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $8.7 million. Its 2,016 members currently have $15.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WESTSIDE COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important 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 strength, capital is crucial. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, WESTSIDE COMMUNITY received a score of 6 out of a possible 30 points, lower than the national average of 15.65.

WESTSIDE COMMUNITY's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact 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.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, WESTSIDE COMMUNITY scored 40 out of a possible 40 points, exceeding 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 affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

WESTSIDE COMMUNITY scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that the credit union is running ahead of 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.