Safe and Sound

GLASS CAP

Connellsville, PA
4
Star Rating
Founded in 1960, GLASS CAP is an NCUA-insured credit union based in Connellsville, PA. Regulatory filings show the credit union having assets of $29.2 million, as of December 31, 2017.

Members have $20.7 million on deposit tended by 7 full-time employees. With that footprint, the credit union has amassed loans and leases worth $20.7 million. Its 4,902 members currently have $25.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GLASS CAP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, GLASS CAP received a score of 12 out of a possible 30 points, below the national average of 15.65.

GLASS CAP appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid loans.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

GLASS CAP scored 36 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, GLASS CAP scored 16 out of a possible 30, beating the national average of 10.11.

One sign 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.