Safe and Sound

READING BERKS SCHOOL EMPLOYEES

reading, PA
3
Star Rating
READING BERKS SCHOOL EMPLOYEES is a reading, PA-based, NCUA-insured credit union started in 1947. As of December 31, 2017, the credit union had assets of $19.7 million.

The credit union currently holds loans and leases worth $6.6 million. READING BERKS SCHOOL EMPLOYEES's 1,995 members currently have $17.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, READING BERKS SCHOOL EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It works as a buffer against losses and provides protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

READING BERKS SCHOOL EMPLOYEES received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

READING BERKS SCHOOL EMPLOYEES had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble 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 past-due mortgages.

Having a large number of these kinds of assets means a credit union could have to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, READING BERKS SCHOOL EMPLOYEES scored 36 out of a possible 40 points, below the national average of 38.09 points.

READING BERKS SCHOOL EMPLOYEES's ratio of problem assets was 0.00 percent in our test, less than 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 safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, READING BERKS SCHOOL EMPLOYEES scored 2 out of a possible 30, failing to reach the national average of 10.11.

READING BERKS SCHOOL EMPLOYEES 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.