Safe and Sound

HONEYWELL PHILADELPHIA DIV

Ft Washington, PA
2
Star Rating
HONEYWELL PHILADELPHIA DIV is an NCUA-insured credit union founded in 1937 and currently headquartered in Ft Washington, PA. The credit union holds $30.1 million in assets, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union holds loans and leases worth $3.5 million. HONEYWELL PHILADELPHIA DIV's 1,846 members currently have $27.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HONEYWELL PHILADELPHIA DIV exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is valuable. It acts as a bulwark against losses and affords protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, HONEYWELL PHILADELPHIA DIV received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

HONEYWELL PHILADELPHIA DIV's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets could eventually require a credit union to use capital to cover losses, reducing its buffer 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, resulting in reduced earnings and potentially more risk of a failure in the future.

HONEYWELL PHILADELPHIA DIV scored 32 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and 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, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, HONEYWELL PHILADELPHIA DIV scored 0 out of a possible 30, coming in below the national average of 10.11.

One sign that HONEYWELL PHILADELPHIA DIV is doing better than 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.