Safe and Sound

FINANCIAL PARTNERS

DOWNEY, CA
4
Star Rating
DOWNEY, CA-based FINANCIAL PARTNERS is an NCUA-insured credit union started in 1937. As of June 30, 2017, the credit union had assets of $1.25 billion.

Members have $886.6 million on deposit tended by 200 full-time employees. With that footprint, the credit union currently holds loans and leases worth $886.6 million. FINANCIAL PARTNERS's 72,667 members currently have $1.03 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FINANCIAL PARTNERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. When looking at safety and soundness, more capital is preferred.

FINANCIAL PARTNERS fell below the national average of 15.26 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

FINANCIAL PARTNERS's capitalization ratio of 9.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

FINANCIAL PARTNERS scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.15.

Troubled assets made up 4.00 percent of FINANCIAL PARTNERS's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

FINANCIAL PARTNERS scored 6 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.31.

One indication that the credit union is beating its peers in this area was its earnings ratio of 3.00 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.