Safe and Sound

TRANSIT WORKERS

PHILADELPHIA, PA
4
Star Rating
Started in 1967, TRANSIT WORKERS is an NCUA-insured credit union headquartered in PHILADELPHIA, PA. The credit union holds assets of $20.0 million, according to December 31, 2017, regulatory filings.

Members have $8.4 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $8.4 million. Its 5,908 members currently have $16.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRANSIT WORKERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown 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 is an important measurement of a credit union's financial fortitude. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, TRANSIT WORKERS achieved a score of 24 out of a possible 30 points, beating the national average of 15.65.

TRANSIT WORKERS's capitalization ratio of 24.00 percent in our test was above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets could eventually have to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, TRANSIT WORKERS scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money 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 address problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, TRANSIT WORKERS scored 0 out of a possible 30, coming in below the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 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.