Safe and Sound

PHILADELPHIA

PHILADELPHIA, PA
5
Star Rating
PHILADELPHIA is a PHILADELPHIA, PA-based, NCUA-insured credit union founded in 1951. The credit union has assets of $1.10 billion, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 260 full-time employees, the credit union currently holds loans and leases worth $654.3 million. Its 115,928 members currently have $955.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PHILADELPHIA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It works as a bulwark against losses and as protection for members during times of financial trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

PHILADELPHIA racked up 16 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

PHILADELPHIA had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, an indication that it's running neck and neck with its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually require a credit union to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a failure in the future.

PHILADELPHIA scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

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

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, PHILADELPHIA scored 18 out of a possible 30, exceeding the national average of 10.11.

PHILADELPHIA had an earnings ratio of 0.00 percent in our test, above 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.