Safe and Sound

BLACKHAWK

Beaver Falls, PA
3
Star Rating
Started in 1974, BLACKHAWK is an NCUA-insured credit union headquartered in Beaver Falls, PA. Regulatory filings show the credit union having $13.6 million in assets, as of December 31, 2017.

Thanks to the efforts of 4 full-time employees, the credit union has amassed loans and leases worth $4.8 million. BLACKHAWK's 1,272 members currently have $11.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BLACKHAWK exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial strength. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, BLACKHAWK racked up 16 out of a possible 30 points, exceeding the national average of 15.65.

BLACKHAWK had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

BLACKHAWK scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of BLACKHAWK's total assets in our test, less than the national average and 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 long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

BLACKHAWK scored 2 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that the credit union is outperforming 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.