Safe and Sound

PACIFIC POSTAL

SAN JOSE, CA
5
Star Rating
PACIFIC POSTAL is an NCUA-insured credit union started in 1931 and currently based in SAN JOSE, CA. The credit union holds $220.9 million in assets, according to December 31, 2017, regulatory filings.

With 28 full-time employees, the credit union currently holds loans and leases worth $61.2 million. Its 14,208 members currently have $188.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PACIFIC POSTAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works 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 a credit union's financial strength, capital is crucial. When looking at safety and soundness, the more capital, the better.

PACIFIC POSTAL racked up 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

PACIFIC POSTAL's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

PACIFIC POSTAL scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

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

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming 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.