Safe and Sound

SHACOG

Carnegie, PA
3
Star Rating
SHACOG is an NCUA-insured credit union started in 1980 and currently headquartered in Carnegie, PA. As of December 31, 2017, the credit union held assets of $2.3 million.

The credit union currently holds loans and leases worth $970,851. Its 513 members currently have $2.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHACOG 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 grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

SHACOG received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

SHACOG appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, reducing its equity buffer. 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 future failure.

SHACOG exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

SHACOG's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. 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 times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, SHACOG scored 4 out of a possible 30, lower than the national average of 10.11.

One indication that SHACOG is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.