Safe and Sound

PANNONIA

Feasterville, PA
4
Star Rating
PANNONIA is a Feasterville, PA-based, NCUA-insured credit union founded in 1938. Regulatory filings show the credit union having $11.6 million in assets, as of December 31, 2017.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $9.2 million. Its 1,227 members currently have $7.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PANNONIA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

PANNONIA racked up 30 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

PANNONIA's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets means a credit union may have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

PANNONIA scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

PANNONIA's ratio of troubled assets was 0.00 percent in our test, below 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 affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

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

One indication that PANNONIA is doing better than 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.