Safe and Sound

PENNSYLVANIA STATE EMPLOYEES

Harrisburg, PA
4
Star Rating
PENNSYLVANIA STATE EMPLOYEES is an NCUA-insured credit union founded in 1933 and currently headquartered in Harrisburg, PA. The credit union has $5.09 billion in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 715 full-time employees, the credit union has amassed loans and leases worth $3.97 billion. PENNSYLVANIA STATE EMPLOYEES's 441,856 members currently have $4.50 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PENNSYLVANIA STATE EMPLOYEES exhibited a good condition, earning 4 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during times of financial instability for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

PENNSYLVANIA STATE EMPLOYEES received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

PENNSYLVANIA STATE EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union may have 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 money, reducing earnings and increasing the chances of a future failure.

PENNSYLVANIA STATE EMPLOYEES scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled 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, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, PENNSYLVANIA STATE EMPLOYEES scored 16 out of a possible 30, exceeding the national average of 10.11.

One sign that the credit union is doing better than 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.