Safe and Sound

PACIFIC MARINE

OCEANSIDE, CA
4
Star Rating
OCEANSIDE, CA-based PACIFIC MARINE is an NCUA-insured credit union founded in 1952. As of June 30, 2017, the credit union held assets of $794.3 million.

Thanks to the work of 229 full-time employees, the credit union has amassed loans and leases worth $521.1 million. Its 81,772 members currently have $671.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PACIFIC MARINE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

PACIFIC MARINE exceeded the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

PACIFIC MARINE's capitalization ratio of 14.00 percent in our test was better than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

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

PACIFIC MARINE's ratio of problem assets was 1.00 percent in our test, less than 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 has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

PACIFIC MARINE fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

PACIFIC MARINE had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, a sign that it's right in line with 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.