Safe and Sound

MT PLEASANT AREA SCHOOL EMP

MOUNT PLEASANT, PA
5
Star Rating
Started in 1965, MT PLEASANT AREA SCHOOL EMP is an NCUA-insured credit union headquartered in MOUNT PLEASANT, PA. Regulatory filings show the credit union having assets of $2.5 million, as of December 31, 2017.

Its 240 members currently have $2.1 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $765,972.

Overall, Bankrate believes that, as of December 31, 2017, MT PLEASANT AREA SCHOOL EMP exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

MT PLEASANT AREA SCHOOL EMP exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 24 out of a possible 30 points.

MT PLEASANT AREA SCHOOL EMP appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem 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 may eventually be required to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

MT PLEASANT AREA SCHOOL EMP beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

MT PLEASANT AREA SCHOOL EMP scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than 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.