Safe and Sound

PACIFIC COMMUNITY

Fullerton, CA
4
Star Rating
PACIFIC COMMUNITY is a Fullerton, CA-based, NCUA-insured credit union that opened its doors in 1955. As of June 30, 2017, the credit union had assets of $184.1 million.

Members have $94.0 million on deposit tended by 42 full-time employees. With that footprint, the credit union has amassed loans and leases worth $94.0 million. Its 10,292 members currently have $152.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PACIFIC COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It acts as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

PACIFIC COMMUNITY racked up 22 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.26.

PACIFIC COMMUNITY had a capitalization ratio of 15.00 percent in our test, above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets suggests a credit union may eventually have to use capital to absorb losses, reducing 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, resulting in reduced earnings and potentially more risk of a future failure.

PACIFIC COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.

Troubled assets made up 1.00 percent of PACIFIC COMMUNITY's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

PACIFIC COMMUNITY did below-average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One indication that PACIFIC COMMUNITY is outperforming its peers in this area was its earnings ratio of 3.00 percent in our test, above 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.