Safe and Sound

SERVICE STATION DEALERS

PHILA, PA
4
Star Rating
PHILA, PA-based SERVICE STATION DEALERS is an NCUA-insured credit union founded in 1973. The credit union holds $254,835 in assets, according to December 31, 2017, regulatory filings.

SERVICE STATION DEALERS's 112 members currently have $132,150 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $141,536.

Overall, Bankrate believes that, as of December 31, 2017, SERVICE STATION DEALERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is key. It acts as a buffer against losses and affords protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

SERVICE STATION DEALERS achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

SERVICE STATION DEALERS had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a future failure.

SERVICE STATION DEALERS scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

SERVICE STATION DEALERS fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that SERVICE STATION DEALERS 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.