Safe and Sound

TUCSON OLD PUEBLO

Tucson, AZ
3
Star Rating
Tucson, AZ-based TUCSON OLD PUEBLO is an NCUA-insured credit union started in 1935. Regulatory filings show the credit union having assets of $148.2 million, as of June 30, 2017.

With 55 full-time employees, the credit union currently holds loans and leases worth $78.9 million. TUCSON OLD PUEBLO's 13,493 members currently have $136.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TUCSON OLD PUEBLO exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during times of economic instability for the credit union. It follows then that an institution's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, TUCSON OLD PUEBLO received a score of 4 out of a possible 30 points, falling short of the national average of 15.26.

TUCSON OLD PUEBLO's capitalization ratio of 7.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, TUCSON OLD PUEBLO scored 40 out of a possible 40 points, above the national average of 38.15 points.

A below-average ratio of troubled assets of 5.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

TUCSON OLD PUEBLO scored 8 out of a possible 30 on Bankrate's earnings test, coming in below 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 3.00 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.