Safe and Sound

HEALTHCARE FIRST CREDIT UNION

JOHNSTOWN, PA
4
Star Rating
JOHNSTOWN, PA-based HEALTHCARE FIRST CREDIT UNION is an NCUA-insured credit union founded in 1979. As of December 31, 2017, the credit union had assets of $85.1 million.

Members have $41.2 million on deposit tended by 24 full-time employees. With that footprint, the credit union holds loans and leases worth $41.2 million. Its 10,799 members currently have $76.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEALTHCARE FIRST CREDIT UNION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer 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 strength, capital is important. When looking at safety and soundness, the higher the capital, the better.

HEALTHCARE FIRST CREDIT UNION came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

HEALTHCARE FIRST CREDIT UNION 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, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets may eventually require a credit union to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, HEALTHCARE FIRST CREDIT UNION scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

HEALTHCARE FIRST CREDIT UNION's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

HEALTHCARE FIRST CREDIT UNION fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating its peers in this area.

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.