Safe and Sound

BELCO COMMUNITY CREDIT UNION

Harrisburg, PA
3
Star Rating
BELCO COMMUNITY CREDIT UNION is a Harrisburg, PA-based, NCUA-insured credit union started in 1939. The credit union holds $595.8 million in assets, according to December 31, 2017, regulatory filings.

With 160 full-time employees, the credit union currently holds loans and leases worth $430.3 million. Its 64,607 members currently have $502.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BELCO COMMUNITY CREDIT UNION 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides 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 important. From a safety and soundness perspective, the more capital, the better.

BELCO COMMUNITY CREDIT UNION received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

BELCO COMMUNITY CREDIT UNION's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets means a credit union could have to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

BELCO COMMUNITY CREDIT UNION fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

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

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

BELCO COMMUNITY CREDIT UNION fell behind the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One indication that the credit union is outperforming 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.