Safe and Sound

CALIFORNIA BEAR

Los Angeles, CA
2
Star Rating
CALIFORNIA BEAR is a Los Angeles, CA-based, NCUA-insured credit union started in 1933. Regulatory filings show the credit union having $115.8 million in assets, as of June 30, 2017.

Thanks to the work of 21 full-time employees, the credit union has amassed loans and leases worth $42.7 million. Its 10,511 members currently have $107.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CALIFORNIA BEAR exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. Therefore, an institution's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

CALIFORNIA BEAR came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 4 out of a possible 30 points.

CALIFORNIA BEAR had a capitalization ratio of 7.00 percent in our test, worse than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, reducing its equity cushion. 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 failure in the future.

On Bankrate's test of asset quality, CALIFORNIA BEAR scored 36 out of a possible 40 points, below the national average of 38.15 points.

A higher-than-average ratio of troubled assets of 8.00 percent in our test was something to watch for CALIFORNIA BEAR.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

CALIFORNIA BEAR scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

CALIFORNIA BEAR had an earnings ratio of 0.00 percent in our test, less than the average for all credit unions, an indication that it's running behind 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.