Safe and Sound

PENSACOLA L & N

PENSACOLA, FL
5
Star Rating
PENSACOLA L & N is an NCUA-insured credit union founded in 1951 and currently headquartered in PENSACOLA, FL. Regulatory filings show the credit union having $8.0 million in assets, as of December 31, 2017.

Thanks to the work of 4 full-time employees, the credit union holds loans and leases worth $5.1 million. Its 1,217 members currently have $6.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PENSACOLA L & N exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade U.S. 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 when a credit union is struggling financially. It follows then that a credit union's level of capital is a valuable measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

PENSACOLA L & N scored above the national average of 15.65 points on our test to measure capital adequacy, racking up 28 out of a possible 30 points.

PENSACOLA L & N had a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these types of assets suggests a credit union may have to use capital to absorb losses, cutting down on 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, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, PENSACOLA L & N scored 40 out of a possible 40 points, beating the national average of 38.09 points.

PENSACOLA L & N's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive 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. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

PENSACOLA L & N scored 2 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

PENSACOLA L & N had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign 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.