Safe and Sound

PEOPLES NATURAL G GEN OFS EMP

Pittsburgh, PA
2
Star Rating
PEOPLES NATURAL G GEN OFS EMP is a Pittsburgh, PA-based, NCUA-insured credit union that opened its doors in 1935. The credit union holds $2.5 million in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $329,060. Its 373 members currently have $2.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEOPLES NATURAL G GEN OFS EMP exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is preferred.

PEOPLES NATURAL G GEN OFS EMP racked up 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

PEOPLES NATURAL G GEN OFS EMP had a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

PEOPLES NATURAL G GEN OFS EMP exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of PEOPLES NATURAL G GEN OFS EMP's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, PEOPLES NATURAL G GEN OFS EMP scored 0 out of a possible 30, failing to reach 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.