Safe and Sound

HILL DISTRICT

Pittsburgh, PA
1
Star Rating
HILL DISTRICT is a Pittsburgh, PA-based, NCUA-insured credit union that opened its doors in 1970. The credit union has assets of $4.9 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $2.1 million. Its 2,975 members currently have $3.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HILL DISTRICT exhibited a significantly below-average condition, earning 1 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 U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is key. It acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

HILL DISTRICT received a score of 0 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

Asset Quality Score

In this test, Bankrate tries to determine the effect 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 a large number of these types of assets suggests a credit union could eventually have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a future failure.

HILL DISTRICT fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 12 out of a possible 40 points .

The credit union's ratio of problem assets was 1.00 percent in our test, identical to the national average.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

HILL DISTRICT fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that the credit union is running ahead of 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.