Safe and Sound

NORRISTOWN BELL

Blue Bell, PA
4
Star Rating
NORRISTOWN BELL is an NCUA-insured credit union founded in 1940 and currently headquartered in Blue Bell, PA. The credit union holds $54.0 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 9 full-time employees, the credit union currently holds loans and leases worth $23.1 million. Its 4,058 members currently have $47.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORRISTOWN BELL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. Therefore, a credit union's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

NORRISTOWN BELL fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 14 out of a possible 30 points.

NORRISTOWN BELL appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb 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 money, decreasing earnings and elevating the chances of a future failure.

NORRISTOWN BELL scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

Troubled assets made up 0.00 percent of NORRISTOWN BELL's total assets in our test, less than 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. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

NORRISTOWN BELL did below-average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One sign that NORRISTOWN BELL 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.