Safe and Sound

P.N.G. NORTHERN

Vandergrift, PA
3
Star Rating
P.N.G. NORTHERN is an NCUA-insured credit union started in 1971 and currently based in Vandergrift, PA. Regulatory filings show the credit union having assets of $3.9 million, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $3.4 million. Its 485 members currently have $2.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, P.N.G. NORTHERN exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is essential. It works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is better.

P.N.G. NORTHERN came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

P.N.G. NORTHERN had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, P.N.G. NORTHERN scored 32 out of a possible 40 points, coming in below the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making 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, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, P.N.G. NORTHERN scored 8 out of a possible 30, falling short of the national average of 10.11.

One sign that P.N.G. NORTHERN is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.