Safe and Sound

BACHARACH EMPLOYEES

New Kensington, PA
4
Star Rating
New Kensington, PA-based BACHARACH EMPLOYEES is an NCUA-insured credit union started in 1949. As of December 31, 2017, the credit union had assets of $188,827.

The credit union holds loans and leases worth $75,698. BACHARACH EMPLOYEES's 44 members currently have $121,369 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BACHARACH EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during times of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is key. When it comes to safety and soundness, more capital is preferred.

BACHARACH EMPLOYEES scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

BACHARACH EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets could eventually force a credit union to use capital to absorb losses, diminishing 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, pushing down earnings and elevating the chances of a failure in the future.

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them 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.

On Bankrate's test of earnings, BACHARACH EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

BACHARACH EMPLOYEES had an earnings ratio of 0.00 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.