Safe and Sound

PACIFIC

Diamond Bar, CA
4
Star Rating
Founded in 1956, PACIFIC is an NCUA-insured credit union headquartered in Diamond Bar, CA. The credit union holds $17.4 million in assets, according to December 31, 2017, regulatory filings.

Members have $5.6 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.6 million. PACIFIC's 1,107 members currently have $14.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PACIFIC 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 bulwark against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, PACIFIC achieved a score of 20 out of a possible 30 points, above the national average of 15.65.

PACIFIC appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

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 loans.

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

PACIFIC did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

PACIFIC did below-average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that PACIFIC 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.