Safe and Sound

R-S BELLCO

NEW BRIGHTON, PA
2
Star Rating
Founded in 1953, R-S BELLCO is an NCUA-insured credit union based in NEW BRIGHTON, PA. The credit union has $26.4 million in assets, according to December 31, 2017, regulatory filings.

With 7 full-time employees, the credit union currently holds loans and leases worth $13.9 million. Its 2,705 members currently have $24.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, R-S BELLCO exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a cushion against losses and affords protection for members during times of economic trouble for the credit union. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, R-S BELLCO received a score of 4 out of a possible 30 points, below the national average of 15.65.

R-S BELLCO's capitalization ratio of 4.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, R-S BELLCO scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

R-S BELLCO scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

R-S BELLCO had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.