Safe and Sound

HOLSEY TEMPLE

Philadelphia, PA
5
Star Rating
Philadelphia, PA-based HOLSEY TEMPLE is an NCUA-insured credit union started in 1966. Regulatory filings show the credit union having assets of $25,470, as of December 31, 2017.

The credit union holds loans and leases worth $3,202. Its 72 members currently have $12,612 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOLSEY TEMPLE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial fortitude. It works as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, HOLSEY TEMPLE achieved a score of 30 out of a possible 30 points, above the national average of 15.65.

HOLSEY TEMPLE had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets means a credit union may have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.

HOLSEY TEMPLE scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

HOLSEY TEMPLE exceeded the national average on Bankrate's earnings test, achieving a score of 20 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 running ahead of 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.