Safe and Sound

PANHANDLE EDUCATORS

Panama City, FL
5
Star Rating
Panama City, FL-based PANHANDLE EDUCATORS is an NCUA-insured credit union founded in 1957. Regulatory filings show the credit union having assets of $181.0 million, as of December 31, 2017.

Members have $99.5 million on deposit tended by 47 full-time employees. With that footprint, the credit union has amassed loans and leases worth $99.5 million. PANHANDLE EDUCATORS's 13,017 members currently have $154.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PANHANDLE EDUCATORS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is preferred.

PANHANDLE EDUCATORS achieved a score of 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

PANHANDLE EDUCATORS's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a failure in the future.

PANHANDLE EDUCATORS exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

PANHANDLE EDUCATORS scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

One sign that the credit union is outperforming 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.