Safe and Sound

APEX COMMUNITY

Stowe, PA
2
Star Rating
APEX COMMUNITY is a Stowe, PA-based, NCUA-insured credit union started in 1949. The credit union has $41.9 million in assets, according to June 30, 2017, regulatory filings.

Members have $30.5 million on deposit tended by 10 full-time employees. With that footprint, the credit union has amassed loans and leases worth $30.5 million. Its 4,671 members currently have $36.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, APEX COMMUNITY exhibited a generally satisfactory condition, earning 3 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?

Find out

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, a credit union's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

APEX COMMUNITY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.26.

APEX COMMUNITY appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, 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 could eventually have to use capital to cover losses, decreasing 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 future failure.

APEX COMMUNITY scored 32 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.15.

APEX COMMUNITY's ratio of troubled assets was 16.00 percent in our test, greater than the national average and something to watch.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

APEX COMMUNITY fell short of the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

APEX COMMUNITY had an earnings ratio of 3.00 percent in our test, better than the average for all credit unions, suggesting 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.