Safe and Sound

CHEVRON

Oakland, CA
4
Star Rating
Founded in 1935, CHEVRON is an NCUA-insured credit union based in Oakland, CA. As of June 30, 2017, the credit union had assets of $3.12 billion.

Thanks to the efforts of 259 full-time employees, the credit union has amassed loans and leases worth $2.53 billion. CHEVRON's 107,845 members currently have $2.76 billion in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, CHEVRON received a score of 12 out of a possible 30 points, falling short of the national average of 15.26.

CHEVRON appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 11.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets may eventually force a credit union to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

CHEVRON scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.15.

A lower-than-average ratio of troubled assets of 2.00 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 long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

CHEVRON beat the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 7.00 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.