Safe and Sound

STANDARD STEEL EMP

burnham, PA
3
Star Rating
burnham, PA-based STANDARD STEEL EMP is an NCUA-insured credit union started in 1967. As of June 30, 2017, the credit union held assets of $5.8 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.0 million. STANDARD STEEL EMP's 1,160 members currently have $5.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, STANDARD STEEL EMP exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, STANDARD STEEL EMP received a score of 4 out of a possible 30 points, coming in below the national average of 15.26.

STANDARD STEEL EMP appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 7.00 percent in our test, below 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 loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the chances of a future failure.

STANDARD STEEL EMP did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 3.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

STANDARD STEEL EMP received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 2.00 percent in our test, better 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.