Safe and Sound

PACIFIC TRANSPORTATION

Gardena, CA
4
Star Rating
Gardena, CA-based PACIFIC TRANSPORTATION is an NCUA-insured credit union started in 1939. As of June 30, 2017, the credit union had assets of $61.8 million.

Members have $35.4 million on deposit tended by 17 full-time employees. With that footprint, the credit union has amassed loans and leases worth $35.4 million. PACIFIC TRANSPORTATION's 5,682 members currently have $49.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PACIFIC TRANSPORTATION 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 grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the more capital, the better.

PACIFIC TRANSPORTATION achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.26.

PACIFIC TRANSPORTATION's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended 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 loans.

Having lots of these kinds of assets means a credit union could have to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

PACIFIC TRANSPORTATION scored 32 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.15.

The credit union's ratio of troubled assets was 15.00 percent in our test, above the national average and something to watch.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

PACIFIC TRANSPORTATION fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

PACIFIC TRANSPORTATION had an earnings ratio of -1.00 percent in our test, below the average for all credit unions, a sign that it's lagging behind 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.