Safe and Sound

ANTIOCH COMMUNITY

ANTIOCH, CA
3
Star Rating
ANTIOCH, CA-based ANTIOCH COMMUNITY is an NCUA-insured credit union founded in 1959. As of June 30, 2017, the credit union held assets of $26.8 million.

Thanks to the efforts of 5 full-time employees, the credit union holds loans and leases worth $9.2 million. Its 1,569 members currently have $24.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ANTIOCH COMMUNITY 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 grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the higher the capital, the better.

ANTIOCH COMMUNITY came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

ANTIOCH COMMUNITY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these kinds of assets means a credit union may eventually have to use capital to absorb losses, diminishing its buffer of equity. 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, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, ANTIOCH COMMUNITY scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, ANTIOCH COMMUNITY scored 6 out of a possible 30, lower than the national average of 10.31.

One indication that ANTIOCH COMMUNITY is running ahead of its peers in this area was its earnings ratio of 2.00 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.