Safe and Sound

BEDCO HOSPITAL

EVERETT, PA
5
Star Rating
BEDCO HOSPITAL is an EVERETT, PA-based, NCUA-insured credit union founded in 1961. The credit union holds $2.0 million in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $1.4 million. BEDCO HOSPITAL's 749 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BEDCO HOSPITAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions on safety and soundness.

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 strength, capital is crucial. It works as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

BEDCO HOSPITAL exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 26 out of a possible 30 points.

BEDCO HOSPITAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 26.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

BEDCO HOSPITAL did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

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, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, BEDCO HOSPITAL scored 8 out of a possible 30, lower than the national average of 10.11.

One indication that BEDCO HOSPITAL is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.