Safe and Sound

PARTNERS FINANCIAL

GLEN ALLEN, VA
2
Star Rating
Started in 1958, PARTNERS FINANCIAL is an NCUA-insured credit union headquartered in GLEN ALLEN, VA. As of June 30, 2017, the credit union had assets of $81.3 million.

With 26 full-time employees, the credit union has amassed loans and leases worth $56.0 million. PARTNERS FINANCIAL's 9,253 members currently have $74.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PARTNERS FINANCIAL exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial fortitude, capital is essential. When it comes to safety and soundness, more capital is better.

PARTNERS FINANCIAL received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.26.

PARTNERS FINANCIAL had a capitalization ratio of 7.00 percent in our test, less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets means a credit union could eventually have to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the risk of a failure in the future.

PARTNERS FINANCIAL scored 36 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.15.

An above-average ratio of troubled assets of 8.00 percent in our test was something to keep an eye on for the credit union.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, PARTNERS FINANCIAL scored 0 out of a possible 30, failing to reach the national average of 10.31.

PARTNERS FINANCIAL had an earnings ratio of -3.00 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.