Safe and Sound

PAMPA MUNICIPAL

pampa, TX
4
Star Rating
Founded in 1953, PAMPA MUNICIPAL is an NCUA-insured credit union based in pampa, TX. As of December 31, 2017, the credit union had assets of $3.6 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $3.2 million. Its 535 members currently have $3.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PAMPA MUNICIPAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

PAMPA MUNICIPAL scored below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

PAMPA MUNICIPAL had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is 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 unpaid mortgages.

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

PAMPA MUNICIPAL finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 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 profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, PAMPA MUNICIPAL scored 18 out of a possible 30, better than the national average of 10.11.

PAMPA MUNICIPAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's doing better than 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.