Safe and Sound

PREMIER AMERICA

Chatsworth, CA
4
Star Rating
Chatsworth, CA-based PREMIER AMERICA is an NCUA-insured credit union started in 1957. The credit union holds $2.47 billion in assets, according to December 31, 2017, regulatory filings.

With 295 full-time employees, the credit union has amassed loans and leases worth $1.97 billion. Its 103,878 members currently have $2.19 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PREMIER AMERICA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

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

PREMIER AMERICA had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

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 unpaid mortgages.

Having lots of these kinds of assets means a credit union could eventually have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the chances of a future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

PREMIER AMERICA did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

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