Safe and Sound

PIONEER MUTUAL

SUGAR LAND, TX
5
Star Rating
SUGAR LAND, TX-based PIONEER MUTUAL is an NCUA-insured credit union started in 1981. Regulatory filings show the credit union having $136.0 million in assets, as of June 30, 2017.

With 33 full-time employees, the credit union has amassed loans and leases worth $77.6 million. PIONEER MUTUAL's 8,167 members currently have $114.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PIONEER MUTUAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is key. From a safety and soundness perspective, the higher the capital, the better.

PIONEER MUTUAL achieved a score of 22 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.26.

PIONEER MUTUAL had a capitalization ratio of 15.00 percent in our test, better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, diminishing 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, reducing earnings and elevating the chances of a failure in the future.

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

A lower-than-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

PIONEER MUTUAL scored 8 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.31.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 4.00 percent in our test, above 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.