Safe and Sound

CALIFORNIA STATE & FED EMP #20

EUREKA, CA
5
Star Rating
CALIFORNIA STATE & FED EMP #20 is a EUREKA, CA-based, NCUA-insured credit union dating back to 1951. Regulatory filings show the credit union having assets of $135.1 million, as of June 30, 2017.

Thanks to the work of 6 full-time employees, the credit union has amassed loans and leases worth $47.1 million. CALIFORNIA STATE & FED EMP #20's 5,342 members currently have $116.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CALIFORNIA STATE & FED EMP #20 exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

CALIFORNIA STATE & FED EMP #20 scored above the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.

CALIFORNIA STATE & FED EMP #20 had a capitalization ratio of 14.00 percent in our test, higher than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

CALIFORNIA STATE & FED EMP #20 scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.15.

A lower-than-average ratio of problem 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 affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

CALIFORNIA STATE & FED EMP #20 scored 12 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

The credit union had an earnings ratio of 6.00 percent in our test, above the average for all credit unions, a sign that it's doing better than 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.