Safe and Sound

PORT ARTHUR COMMUNITY

Port Arthur, TX
3
Star Rating
PORT ARTHUR COMMUNITY is an NCUA-insured credit union started in 1950 and currently based in Port Arthur, TX. As of December 31, 2017, the credit union held assets of $22.6 million.

With 7 full-time employees, the credit union currently holds loans and leases worth $15.4 million. Its 2,552 members currently have $19.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PORT ARTHUR COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial resilience, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

PORT ARTHUR COMMUNITY received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

PORT ARTHUR COMMUNITY's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets could eventually be required to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

PORT ARTHUR COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

PORT ARTHUR COMMUNITY's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

PORT ARTHUR COMMUNITY fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.