Safe and Sound

PICKENS

PICKENS, SC
4
Star Rating
PICKENS, SC-based PICKENS is an NCUA-insured credit union founded in 1961. The credit union holds assets of $22.9 million, according to June 30, 2017, regulatory filings.

Members have $8.0 million on deposit tended by 7 full-time employees. With that footprint, the credit union has amassed loans and leases worth $8.0 million. Its 3,919 members currently have $19.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PICKENS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major 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 strength, capital is valuable. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. 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, PICKENS achieved a score of 20 out of a possible 30 points, exceeding the national average of 15.26.

PICKENS had a capitalization ratio of 14.00 percent in our test, higher than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a future failure.

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

A below-average ratio of problem assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

PICKENS scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 2.00 percent in our test, higher 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.