Safe and Sound

PARTNERS

BURBANK, CA
4
Star Rating
PARTNERS is a BURBANK, CA-based, NCUA-insured credit union started in 1968. As of June 30, 2017, the credit union had assets of $1.59 billion.

Thanks to the work of 373 full-time employees, the credit union currently holds loans and leases worth $1.40 billion. PARTNERS's 141,245 members currently have $1.37 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PARTNERS 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 grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is important. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, PARTNERS received a score of 14 out of a possible 30 points, below the national average of 15.26.

PARTNERS had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets means a credit union could have to use capital to absorb losses, shrinking its cushion of equity. 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 depressed earnings and potentially more risk of a failure in the future.

PARTNERS came in below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A greater-than-average ratio of problem assets of 8.00 percent in our test was a potential area of concern for PARTNERS.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, PARTNERS scored 18 out of a possible 30, beating the national average of 10.31.

PARTNERS had an earnings ratio of 8.00 percent in our test, above the average for all credit unions, an indication that it's outperforming 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.