Safe and Sound

ARMSTRONG CO. FEDERAL EMP.

KITTANNING, PA
4
Star Rating
ARMSTRONG CO. FEDERAL EMP. is an NCUA-insured credit union founded in 1969 and currently headquartered in KITTANNING, PA. Regulatory filings show the credit union having assets of $14.9 million, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $2.1 million. Its 2,821 members currently have $12.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARMSTRONG CO. FEDERAL EMP. 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 evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It works as a cushion against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

ARMSTRONG CO. FEDERAL EMP. racked up 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

ARMSTRONG CO. FEDERAL EMP. appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets means a credit union may have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, ARMSTRONG CO. FEDERAL EMP. scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of ARMSTRONG CO. FEDERAL EMP.'s total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

ARMSTRONG CO. FEDERAL EMP. scored 2 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One sign that ARMSTRONG CO. FEDERAL EMP. is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.