Safe and Sound

BUCKS COUNTY EMPLOYEES

Doylestown, PA
4
Star Rating
BUCKS COUNTY EMPLOYEES is a Doylestown, PA-based, NCUA-insured credit union that opened its doors in 1966. As of December 31, 2017, the credit union held assets of $39.1 million.

The credit union currently holds loans and leases worth $3.1 million. Its 1,915 members currently have $35.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BUCKS COUNTY 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 did on the three key criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure the adequacy of a credit union's capital, BUCKS COUNTY EMPLOYEES received a score of 8 out of a possible 30 points, less than the national average of 15.65.

BUCKS COUNTY EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

BUCKS COUNTY EMPLOYEES exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

BUCKS COUNTY EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

BUCKS COUNTY EMPLOYEES fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.