Safe and Sound

WHEAT STATE

WICHITA, KS
1
Star Rating
WICHITA, KS-based WHEAT STATE is an NCUA-insured credit union started in 1963. The credit union holds $20.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $18.0 million on deposit tended by 8 full-time employees. With that footprint, the credit union holds loans and leases worth $18.0 million. WHEAT STATE's 4,308 members currently have $16.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WHEAT STATE exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

WHEAT STATE fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 4 out of a possible 30 points.

WHEAT STATE had a capitalization ratio of 4.00 percent in our test, worse than 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 determine the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

WHEAT STATE scored 24 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

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 has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's test of earnings, WHEAT STATE scored 0 out of a possible 30, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than 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.