Safe and Sound

PAHO/WHO

WASHINGTON, DC
5
Star Rating
WASHINGTON, DC-based PAHO/WHO is an NCUA-insured credit union founded in 1949. As of December 31, 2017, the credit union had assets of $219.7 million.

Thanks to the work of 19 full-time employees, the credit union currently holds loans and leases worth $119.9 million. PAHO/WHO's 5,276 members currently have $180.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PAHO/WHO exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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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 buffer against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

PAHO/WHO achieved a score of 26 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

PAHO/WHO appears to be more resilient than its peers, with a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets could eventually require a credit union to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, PAHO/WHO scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

PAHO/WHO received below-average marks on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.