Safe and Sound

PENN EAST

SCRANTON, PA
3
Star Rating
PENN EAST is an NCUA-insured credit union founded in 1938 and currently based in SCRANTON, PA. The credit union holds assets of $167.2 million, according to December 31, 2017, regulatory filings.

With 43 full-time employees, the credit union holds loans and leases worth $105.9 million. Its 21,469 members currently have $148.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PENN EAST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It acts as a cushion against losses and provides protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, PENN EAST received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

PENN EAST 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 past-due mortgages, 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 cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, PENN EAST scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

PENN EAST's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

PENN EAST did below-average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign that PENN EAST is running ahead of 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.