Safe and Sound

PARSONS

Pasadena, CA
4
Star Rating
Pasadena, CA-based PARSONS is an NCUA-insured credit union started in 1975. Regulatory filings show the credit union having assets of $211.4 million, as of June 30, 2017.

Thanks to the work of 20 full-time employees, the credit union currently holds loans and leases worth $87.0 million. PARSONS's 6,429 members currently have $182.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PARSONS 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 evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion 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 a crucial measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

PARSONS scored above the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, racking up 18 out of a possible 30 points.

PARSONS had a capitalization ratio of 13.00 percent in our test, the same as the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets could eventually be forced to use capital to cover losses, shrinking its equity cushion. 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 diminished earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on 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, likely making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

PARSONS fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One sign that the credit union is doing better than 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.