Safe and Sound

EAGLE COMMUNITY

LAKE FOREST, CA
3
Star Rating
EAGLE COMMUNITY is a LAKE FOREST, CA-based, NCUA-insured credit union started in 1937. As of June 30, 2017, the credit union had assets of $245.2 million.

Members have $144.4 million on deposit tended by 61 full-time employees. With that footprint, the credit union currently holds loans and leases worth $144.4 million. Its 18,874 members currently have $219.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, EAGLE COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial fortitude, capital is useful. From a safety and soundness perspective, more capital is preferred.

EAGLE COMMUNITY received a score of 6 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.26.

EAGLE COMMUNITY had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

EAGLE COMMUNITY 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 .

A below-average ratio of troubled assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

EAGLE COMMUNITY scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.31.

EAGLE COMMUNITY had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with 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.