Safe and Sound

PENINSULA GEN HOSP&MED CENTR EMPLS

Salisbury, MD
5
Star Rating
Salisbury, MD-based PENINSULA GEN HOSP&MED CENTR EMPLS is an NCUA-insured credit union started in 1978. Regulatory filings show the credit union having assets of $3.1 million, as of December 31, 2017.

The credit union holds loans and leases worth $1.5 million. Its 1,688 members currently have $2.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PENINSULA GEN HOSP&MED CENTR EMPLS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, PENINSULA GEN HOSP&MED CENTR EMPLS racked up 30 out of a possible 30 points, better than the national average of 15.65.

PENINSULA GEN HOSP&MED CENTR EMPLS had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

PENINSULA GEN HOSP&MED CENTR EMPLS scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

PENINSULA GEN HOSP&MED CENTR EMPLS scored 14 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.11.

PENINSULA GEN HOSP&MED CENTR EMPLS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.