Safe and Sound

PARK SIDE FINANCIAL

Whitefish, MT
4
Star Rating
PARK SIDE FINANCIAL is a Whitefish, MT-based, NCUA-insured credit union dating back to 1965. The credit union holds assets of $228.9 million, according to December 31, 2017, regulatory filings.

Members have $184.5 million on deposit tended by 85 full-time employees. With that footprint, the credit union holds loans and leases worth $184.5 million. Its 26,141 members currently have $195.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PARK SIDE FINANCIAL exhibited a good condition, earning 4 out of 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

PARK SIDE FINANCIAL fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

PARK SIDE FINANCIAL had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

PARK SIDE FINANCIAL scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that the credit union 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.