Safe and Sound

PARKVIEW COMMUNITY

MCKEESPORT, PA
4
Star Rating
Founded in 1935, PARKVIEW COMMUNITY is an NCUA-insured credit union headquartered in MCKEESPORT, PA. The credit union holds $43.3 million in assets, according to December 31, 2017, regulatory filings.

With 13 full-time employees, the credit union holds loans and leases worth $22.8 million. PARKVIEW COMMUNITY's 7,405 members currently have $37.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PARKVIEW COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial fortitude, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, PARKVIEW COMMUNITY scored 16 out of a possible 30 points, exceeding the national average of 15.65.

PARKVIEW COMMUNITY had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing 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, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, PARKVIEW COMMUNITY scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of PARKVIEW COMMUNITY's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

PARKVIEW COMMUNITY scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.