Safe and Sound

DUQ LITE EMPLOYEES

BEAVER FALLS, PA
2
Star Rating
DUQ LITE EMPLOYEES is an NCUA-insured credit union founded in 1951 and currently based in BEAVER FALLS, PA. Regulatory filings show the credit union having assets of $1.2 million, as of June 30, 2017.

The credit union currently holds loans and leases worth $986,975. Its 336 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DUQ LITE EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. 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, when it comes to measuring an an institution's financial fortitude, capital is key. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, DUQ LITE EMPLOYEES received a score of 8 out of a possible 30 points, below the national average of 15.26.

DUQ LITE EMPLOYEES appears to be on less solid financial footing 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

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets means a credit union could have to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, DUQ LITE EMPLOYEES scored 36 out of a possible 40 points, falling short of the national average of 38.15 points.

DUQ LITE EMPLOYEES's ratio of problem assets was 11.00 percent in our test, greater than the national average and a potential area of concern.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

DUQ LITE EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.31.

One sign that DUQ LITE EMPLOYEES is performing behind its peers in this area was its earnings ratio of -8.00 percent in our test, lower 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.