Safe and Sound

STEAMFITTERS PHILA

WEST CHESTER, PA
3
Star Rating
Founded in 1967, STEAMFITTERS PHILA is an NCUA-insured credit union based in WEST CHESTER, PA. The credit union holds assets of $1.2 million, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $1.0 million. Its 1,017 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STEAMFITTERS PHILA 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 important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial strength. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

STEAMFITTERS PHILA received a score of 12 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.

STEAMFITTERS PHILA appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

STEAMFITTERS PHILA scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

STEAMFITTERS PHILA scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

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.