Safe and Sound

PATELCO

Pleasanton, CA
4
Star Rating
PATELCO is an NCUA-insured credit union started in 1936 and currently headquartered in Pleasanton, CA. The credit union holds $5.86 billion in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 621 full-time employees, the credit union currently holds loans and leases worth $4.00 billion. Its 316,266 members currently have $5.11 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PATELCO 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?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

PATELCO scored below the national average of 15.26 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

PATELCO's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

Having lots of these types of assets means a credit union may have to use capital to absorb losses, decreasing 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 depressed earnings and potentially more risk of a future failure.

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

Troubled assets made up 2.00 percent of the credit union's total assets in our test, lower than 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 has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

PATELCO received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 8.00 percent in our test, above the average for all credit unions, suggesting 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.