Safe and Sound

BRADFORD AREA SCHOOL EMPLOYEES

Bradford, PA
4
Star Rating
BRADFORD AREA SCHOOL EMPLOYEES is a Bradford, PA-based, NCUA-insured credit union dating back to 1939. Regulatory filings show the credit union having $970,023 in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $739,318. Its 285 members currently have $778,556 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BRADFORD AREA SCHOOL EMPLOYEES 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 key 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 cushion against losses and as protection for members during periods of economic trouble for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

BRADFORD AREA SCHOOL EMPLOYEES did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 30 out of a possible 30 points.

BRADFORD AREA SCHOOL EMPLOYEES's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a future failure.

BRADFORD AREA SCHOOL EMPLOYEES scored 32 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

A below-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

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

BRADFORD AREA SCHOOL EMPLOYEES scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above 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.