Safe and Sound

PATTERSON

ARKADELPHIA, AR
4
Star Rating
PATTERSON is an ARKADELPHIA, AR-based, NCUA-insured credit union founded in 1957. As of December 31, 2017, the credit union had assets of $19.4 million.

Members have $14.7 million on deposit tended by 7 full-time employees. With that footprint, the credit union currently holds loans and leases worth $14.7 million. Its 3,351 members currently have $17.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PATTERSON exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is valuable. It works as a cushion against losses and as protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, PATTERSON received a score of 12 out of a possible 30 points, failing to reach the national average of 15.65.

PATTERSON appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

Having extensive holdings of these types of assets suggests a credit union may have to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, PATTERSON scored 36 out of a possible 40 points, less than the national average of 38.09 points.

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

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

PATTERSON received above-average marks on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

PATTERSON had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.