Safe and Sound

U.F.C.W. LOCAL 23

Canonsburg, PA
2
Star Rating
Canonsburg, PA-based U.F.C.W. LOCAL 23 is an NCUA-insured credit union founded in 1975. Regulatory filings show the credit union having assets of $8.0 million, as of December 31, 2017.

Members have $4.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $4.0 million. Its 2,515 members currently have $6.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U.F.C.W. LOCAL 23 exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, U.F.C.W. LOCAL 23 scored 18 out of a possible 30 points, beating the national average of 15.65.

U.F.C.W. LOCAL 23 appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

U.F.C.W. LOCAL 23 fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

U.F.C.W. LOCAL 23's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive 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, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

U.F.C.W. LOCAL 23 underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

U.F.C.W. LOCAL 23 had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating its peers in this area.

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.