Safe and Sound

EDWARDS

EDWARDS, CA
4
Star Rating
EDWARDS is an NCUA-insured credit union founded in 1962 and currently headquartered in EDWARDS, CA. Regulatory filings show the credit union having $196.3 million in assets, as of June 30, 2017.

With 38 full-time employees, the credit union currently holds loans and leases worth $77.5 million. EDWARDS's 19,641 members currently have $180.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, EDWARDS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the higher the capital, the better.

EDWARDS fell below the national average of 15.26 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

EDWARDS's capitalization ratio of 7.00 percent in our test was less than the average for all credit unions, suggesting 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 reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

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

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

Troubled assets made up 4.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

EDWARDS did above-average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 6.00 percent in our test, above 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.