Safe and Sound

WYOMING AREA

Wyoming, PA
3
Star Rating
WYOMING AREA is a WYOMING, PA-based, NCUA-insured credit union started in 1973. Regulatory filings show the credit union having $8.1 million in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $433,330. WYOMING AREA's 481 members currently have $7.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WYOMING AREA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. When it comes to safety and soundness, the higher the capital, the better.

WYOMING AREA received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

WYOMING AREA appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the risk of a failure in the future.

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

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding 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, lessen a credit union's ability to do those things.

WYOMING AREA did below-average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

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, above 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.