Safe and Sound

CABRILLO

San Diego, CA
4
Star Rating
CABRILLO is a San Diego, CA-based, NCUA-insured credit union founded in 1955. The credit union holds $275.8 million in assets, according to June 30, 2017, regulatory filings.

Members have $139.1 million on deposit tended by 65 full-time employees. With that footprint, the credit union has amassed loans and leases worth $139.1 million. CABRILLO's 22,042 members currently have $245.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CABRILLO exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is essential. When looking at safety and soundness, more capital is preferred.

CABRILLO received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.26.

CABRILLO's capitalization ratio of 10.00 percent in our test was worse than 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 loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, CABRILLO scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A lower-than-average ratio of problem assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

CABRILLO scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

CABRILLO had an earnings ratio of 3.00 percent in our test, above the average for all credit unions, a sign 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.