Safe and Sound

PASADENA SERVICE

PASADENA, CA
3
Star Rating
Founded in 1936, PASADENA SERVICE is an NCUA-insured credit union headquartered in PASADENA, CA. The credit union has $114.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $74.4 million on deposit tended by 31 full-time employees. With that footprint, the credit union holds loans and leases worth $74.4 million. Its 11,309 members currently have $102.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PASADENA SERVICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It acts as a buffer against losses and affords protection for members during periods of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, PASADENA SERVICE received a score of 10 out of a possible 30 points, less than the national average of 15.65.

PASADENA SERVICE appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a failure in the future.

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

PASADENA SERVICE's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

PASADENA SERVICE fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.