Safe and Sound

PREMIER ONE

San Jose, CA
4
Star Rating
PREMIER ONE is a San Jose, CA-based, NCUA-insured credit union dating back to 1968. The credit union has assets of $411.1 million, according to June 30, 2017, regulatory filings.

With 66 full-time employees, the credit union currently holds loans and leases worth $233.7 million. Its 24,055 members currently have $370.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PREMIER ONE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is key. It works as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, PREMIER ONE received a score of 10 out of a possible 30 points, less than the national average of 15.26.

PREMIER ONE had a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

Having lots of these kinds of assets suggests a credit union could have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

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

The credit union's ratio of problem assets was 1.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to 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, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

PREMIER ONE fell behind the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

PREMIER ONE had an earnings ratio of 4.00 percent in our test, better than the average for all credit unions, a sign that it's doing better than 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.