Safe and Sound

PACIFIC CASCADE

Eugene, OR
4
Star Rating
Eugene, OR-based PACIFIC CASCADE is an NCUA-insured credit union started in 1961. The credit union holds assets of $108.2 million, according to December 31, 2017, regulatory filings.

With 33 full-time employees, the credit union has amassed loans and leases worth $81.2 million. Its 10,938 members currently have $98.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PACIFIC CASCADE 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 key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

PACIFIC CASCADE finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 6 out of a possible 30 points.

PACIFIC CASCADE had a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions, an indication 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 troubled assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets may eventually have to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

PACIFIC CASCADE scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

PACIFIC CASCADE's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance 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 more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

PACIFIC CASCADE scored 12 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that PACIFIC CASCADE is running ahead of its peers in this area was its earnings ratio of 0.00 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.