Safe and Sound

PACIFIC SERVICE

Concord, CA
4
Star Rating
PACIFIC SERVICE is a Concord, CA-based, NCUA-insured credit union started in 1936. Regulatory filings show the credit union having $1.17 billion in assets, as of June 30, 2017.

Members have $565.5 million on deposit tended by 112 full-time employees. With that footprint, the credit union has amassed loans and leases worth $565.5 million. PACIFIC SERVICE's 59,541 members currently have $999.9 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of economic instability for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

PACIFIC SERVICE scored 18 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.26.

PACIFIC SERVICE's capitalization ratio of 13.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets suggests a credit union may eventually have to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

PACIFIC SERVICE's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, PACIFIC SERVICE scored 6 out of a possible 30, less than the national average of 10.31.

PACIFIC SERVICE had an earnings ratio of 3.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.