Safe and Sound

TUCSON OLD PUEBLO

Tucson, AZ
3
Star Rating
Tucson, AZ-based TUCSON OLD PUEBLO is an NCUA-insured credit union started in 1935. The credit union holds $147.5 million in assets, according to December 31, 2017, regulatory filings.

Members have $86.6 million on deposit tended by 52 full-time employees. With that footprint, the credit union currently holds loans and leases worth $86.6 million. Its 13,885 members currently have $135.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TUCSON OLD PUEBLO exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

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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 when it comes to measuring an a credit union's financial stability, capital is crucial. When looking at safety and soundness, the more capital, the better.

TUCSON OLD PUEBLO received a score of 4 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

TUCSON OLD PUEBLO's capitalization ratio of 4.00 percent in our test was below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

TUCSON OLD PUEBLO did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

TUCSON OLD PUEBLO underperformed the average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

TUCSON OLD PUEBLO had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.