Safe and Sound

NORTH PENN

Colmar, PA
4
Star Rating
NORTH PENN is an NCUA-insured credit union started in 1955 and currently based in Colmar, PA. The credit union holds $17.4 million in assets, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union holds loans and leases worth $3.6 million. Its 1,501 members currently have $15.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH PENN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, more capital is better.

NORTH PENN received a score of 10 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

NORTH PENN had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, NORTH PENN scored 40 out of a possible 40 points, better than the national average of 38.09 points.

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

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

NORTH PENN did above-average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

NORTH PENN had an earnings ratio of 0.00 percent in our test, better than 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.