Safe and Sound

CHAFFEY

UPLAND, CA
4
Star Rating
UPLAND, CA-based CHAFFEY is an NCUA-insured credit union founded in 1964. As of June 30, 2017, the credit union had assets of $140.9 million.

Thanks to the work of 38 full-time employees, the credit union currently holds loans and leases worth $71.3 million. Its 11,411 members currently have $127.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CHAFFEY 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

Capital acts as a buffer against losses and affords protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. When looking at safety and soundness, the more capital, the better.

CHAFFEY received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.26.

CHAFFEY's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets may eventually be forced to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

CHAFFEY did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

CHAFFEY's ratio of troubled assets was 2.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

CHAFFEY scored 16 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.31.

One indication that CHAFFEY is doing better than its peers in this area was its earnings ratio of 8.00 percent in our test, better than 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.