Safe and Sound

PASADENA POSTAL

PASADENA, TX
5
Star Rating
PASADENA POSTAL is a PASADENA, TX-based, NCUA-insured credit union founded in 1966. As of December 31, 2017, the credit union had assets of $3.1 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $2.6 million. PASADENA POSTAL's 425 members currently have $2.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PASADENA POSTAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's 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

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial stability, capital is key. From a safety and soundness perspective, the more capital, the better.

PASADENA POSTAL scored above the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

PASADENA POSTAL had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

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

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

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

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, PASADENA POSTAL scored 20 out of a possible 30, beating out the national average of 10.11.

PASADENA POSTAL had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.