Safe and Sound

SCRANTON TIMES DOWNTOWN

Scranton, PA
2
Star Rating
SCRANTON TIMES DOWNTOWN is a Scranton, PA-based, NCUA-insured credit union that opened its doors in 1963. As of December 31, 2017, the credit union held assets of $11.0 million.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $7.1 million. Its 2,379 members currently have $10.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SCRANTON TIMES DOWNTOWN exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, SCRANTON TIMES DOWNTOWN received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

SCRANTON TIMES DOWNTOWN appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

SCRANTON TIMES DOWNTOWN came in below the national average of 38.09 on Bankrate's asset quality test, racking up 24 out of a possible 40 points .

A lower-than-average ratio of troubled 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 earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, SCRANTON TIMES DOWNTOWN scored 0 out of a possible 30, less than the national average of 10.11.

One indication that SCRANTON TIMES DOWNTOWN is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.