Safe and Sound

CAL STATE L.A.

LOS ANGELES, CA
4
Star Rating
Founded in 1961, CAL STATE L.A. is an NCUA-insured credit union headquartered in LOS ANGELES, CA. As of June 30, 2017, the credit union had assets of $51.4 million.

Members have $35.8 million on deposit tended by 13 full-time employees. With that footprint, the credit union has amassed loans and leases worth $35.8 million. CAL STATE L.A.'s 4,653 members currently have $46.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CAL STATE L.A. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is important. It works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

CAL STATE L.A. fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, racking up 10 out of a possible 30 points.

CAL STATE L.A. had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union may have to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a future failure.

CAL STATE L.A. scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, CAL STATE L.A. scored 16 out of a possible 30, better than the national average of 10.31.

One sign that CAL STATE L.A. is outperforming its peers in this area was its earnings ratio of 8.00 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.