Safe and Sound

WYOCHEM

GREEN RIVER, WY
4
Star Rating
Started in 1973, WYOCHEM is an NCUA-insured credit union based in Green River, WY. Regulatory filings show the credit union having $20.0 million in assets, as of December 31, 2017.

Members have $17.1 million on deposit tended by 8 full-time employees. With that footprint, the credit union currently holds loans and leases worth $17.1 million. WYOCHEM's 2,670 members currently have $17.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WYOCHEM exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is important. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, WYOCHEM received a score of 12 out of a possible 30 points, less than the national average of 15.65.

WYOCHEM had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets suggests a credit union could have to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

WYOCHEM scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to 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 have less ability to do those things.

On Bankrate's test of earnings, WYOCHEM scored 20 out of a possible 30, beating the national average of 10.11.

WYOCHEM had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.