Safe and Sound

COAST CENTRAL

EUREKA, CA
5
Star Rating
EUREKA, CA-based COAST CENTRAL is an NCUA-insured credit union founded in 1974. The credit union holds assets of $1.34 billion, according to June 30, 2017, regulatory filings.

Members have $600.5 million on deposit tended by 191 full-time employees. With that footprint, the credit union has amassed loans and leases worth $600.5 million. COAST CENTRAL's 65,955 members currently have $1.13 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COAST CENTRAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is valuable. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, COAST CENTRAL received a score of 12 out of a possible 30 points, coming in below the national average of 15.26.

COAST CENTRAL's capitalization ratio of 11.00 percent in our test was less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

COAST CENTRAL exceeded 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 problem assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on 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 better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, COAST CENTRAL scored 18 out of a possible 30, beating out the national average of 10.31.

COAST CENTRAL had an earnings ratio of 9.00 percent in our test, higher than the average for all credit unions, suggesting 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.