Safe and Sound

PRR SOUTH FORK

South Fork, PA
4
Star Rating
PRR SOUTH FORK is a South Fork, PA-based, NCUA-insured credit union founded in 1936. The credit union holds assets of $47.1 million, according to December 31, 2017, regulatory filings.

Members have $8.7 million on deposit tended by 6 full-time employees. With that footprint, the credit union holds loans and leases worth $8.7 million. PRR SOUTH FORK's 2,517 members currently have $39.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PRR SOUTH FORK exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It acts as a bulwark against losses and as protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, PRR SOUTH FORK scored 22 out of a possible 30 points, exceeding the national average of 15.65.

PRR SOUTH FORK had a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

PRR SOUTH FORK beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of PRR SOUTH FORK's total assets in our test, below the national average and suggestive 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. Earnings may 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.

PRR SOUTH FORK scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.