Safe and Sound

WRIGHT-DUNBAR AREA

Dayton, OH
3
Star Rating
Founded in 1955, WRIGHT-DUNBAR AREA is an NCUA-insured credit union based in Dayton, OH. The credit union holds assets of $593,753, according to December 31, 2017, regulatory filings.

WRIGHT-DUNBAR AREA's 417 members currently have $521,617 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $61,329.

Overall, Bankrate believes that, as of December 31, 2017, WRIGHT-DUNBAR AREA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, WRIGHT-DUNBAR AREA scored 16 out of a possible 30 points, beating the national average of 15.65.

WRIGHT-DUNBAR AREA had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

Bankrate uses this test 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 extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, WRIGHT-DUNBAR AREA scored 36 out of a possible 40 points, less than 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 greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, WRIGHT-DUNBAR AREA scored 0 out of a possible 30, less than the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.