Safe and Sound

PEN AIR

PENSACOLA, FL
5
Star Rating
PENSACOLA, FL-based PEN AIR is an NCUA-insured credit union founded in 1936. Regulatory filings show the credit union having assets of $1.39 billion, as of December 31, 2017.

Members have $816.6 million on deposit tended by 318 full-time employees. With that footprint, the credit union has amassed loans and leases worth $816.6 million. Its 98,795 members currently have $1.19 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEN AIR exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is valuable. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, PEN AIR racked up 16 out of a possible 30 points, beating out the national average of 15.65.

PEN AIR's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with large numbers of these kinds of assets may eventually have to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, PEN AIR scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A below-average ratio of problem 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 earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

PEN AIR received above-average marks on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

PEN AIR had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's doing better than 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.