Safe and Sound

CITY OF MCKEESPORT EMPLOYEES

McKeesport, PA
4
Star Rating
Started in 1936, CITY OF MCKEESPORT EMPLOYEES is an NCUA-insured credit union headquartered in McKeesport, PA. As of December 31, 2017, the credit union held assets of $1.0 million.

The credit union has amassed loans and leases worth $179,677. Its 176 members currently have $773,006 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CITY OF MCKEESPORT 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 faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an essential measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, CITY OF MCKEESPORT EMPLOYEES achieved a score of 30 out of a possible 30 points, exceeding the national average of 15.65.

CITY OF MCKEESPORT EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having large numbers of these types of assets could eventually require a credit union to use capital to cover losses, cutting down on 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 diminished earnings and potentially more risk of a failure in the future.

CITY OF MCKEESPORT EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, CITY OF MCKEESPORT EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is outperforming 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.