Safe and Sound

PATENT AND TRADEMARK OFFICE

ALEXANDRIA, VA
3
Star Rating
Founded in 1942, PATENT AND TRADEMARK OFFICE is an NCUA-insured credit union based in ALEXANDRIA, VA. As of December 31, 2017, the credit union had assets of $42.6 million.

Thanks to the work of 10 full-time employees, the credit union currently holds loans and leases worth $21.2 million. PATENT AND TRADEMARK OFFICE's 3,103 members currently have $39.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PATENT AND TRADEMARK OFFICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

PATENT AND TRADEMARK OFFICE scored below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 4 out of a possible 30 points.

PATENT AND TRADEMARK OFFICE had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

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

PATENT AND TRADEMARK OFFICE came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, PATENT AND TRADEMARK OFFICE scored 8 out of a possible 30, coming in below the national average of 10.11.

One sign that PATENT AND TRADEMARK OFFICE is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.