Safe and Sound

MCKEESPORT AREA PUBLIC SCHOOL EMP

MCKEESPORT, PA
5
Star Rating
MCKEESPORT AREA PUBLIC SCHOOL EMP is an NCUA-insured credit union started in 1937 and currently headquartered in MCKEESPORT, PA. As of December 31, 2017, the credit union held assets of $3.5 million.

The credit union holds loans and leases worth $2.3 million. Its 542 members currently have $2.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MCKEESPORT AREA PUBLIC SCHOOL EMP exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is useful. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, MCKEESPORT AREA PUBLIC SCHOOL EMP racked up 28 out of a possible 30 points, better than the national average of 15.65.

MCKEESPORT AREA PUBLIC SCHOOL EMP had a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

MCKEESPORT AREA PUBLIC SCHOOL EMP scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

MCKEESPORT AREA PUBLIC SCHOOL EMP's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

MCKEESPORT AREA PUBLIC SCHOOL EMP fell behind the national average on Bankrate's test of earnings, achieving a score of 2 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, suggesting that it's outperforming 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.