Safe and Sound

COLFAX POWER PLANT EMPLOYEES

SPRINGDALE, PA
2
Star Rating
SPRINGDALE, PA-based COLFAX POWER PLANT EMPLOYEES is an NCUA-insured credit union founded in 1939. Regulatory filings show the credit union having assets of $8.6 million, as of December 31, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $4.8 million. COLFAX POWER PLANT EMPLOYEES's 1,094 members currently have $7.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COLFAX POWER PLANT EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

COLFAX POWER PLANT EMPLOYEES came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

COLFAX POWER PLANT EMPLOYEES had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

COLFAX POWER PLANT EMPLOYEES scored below the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .

A below-average ratio of troubled 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 making money affects its safety and soundness. 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. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, COLFAX POWER PLANT EMPLOYEES scored 0 out of a possible 30, lower than the national average of 10.11.

One sign that the credit union is doing better than 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.