Safe and Sound

FIRST CREDIT UNION OF SCRANTON

SCRANTON, PA
3
Star Rating
SCRANTON, PA-based FIRST CREDIT UNION OF SCRANTON is an NCUA-insured credit union started in 1934. The credit union has $17.6 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 5 full-time employees, the credit union currently holds loans and leases worth $4.9 million. Its 2,410 members currently have $16.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST CREDIT UNION OF SCRANTON exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, FIRST CREDIT UNION OF SCRANTON received a score of 4 out of a possible 30 points, less than the national average of 15.65.

FIRST CREDIT UNION OF SCRANTON appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine 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 kinds of assets suggests a credit union may have to use capital to absorb 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 interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

FIRST CREDIT UNION OF SCRANTON beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-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 earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, FIRST CREDIT UNION OF SCRANTON scored 2 out of a possible 30, falling short of the national average of 10.11.

One indication that the credit union is beating 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.