Safe and Sound

PEOPLE'S COMMUNITY

Vancouver, WA
4
Star Rating
PEOPLE'S COMMUNITY is an NCUA-insured credit union founded in 1952 and currently headquartered in Vancouver, WA. As of June 30, 2017, the credit union had assets of $206.2 million.

Thanks to the work of 36 full-time employees, the credit union currently holds loans and leases worth $71.3 million. Its 12,029 members currently have $182.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PEOPLE'S COMMUNITY 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 major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is crucial. When looking at safety and soundness, more capital is better.

PEOPLE'S COMMUNITY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.26.

PEOPLE'S COMMUNITY appears to be weaker than its peers in this area, with a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, cutting down on its equity cushion. 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 failure in the future.

PEOPLE'S COMMUNITY scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

PEOPLE'S COMMUNITY scored 8 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.