Safe and Sound

EVANGELICAL CHRISTIAN

Brea, CA
4
Star Rating
Started in 1964, EVANGELICAL CHRISTIAN is an NCUA-insured credit union based in Brea, CA. Regulatory filings show the credit union having $802.1 million in assets, as of June 30, 2017.

Members have $577.9 million on deposit tended by 145 full-time employees. With that footprint, the credit union has amassed loans and leases worth $577.9 million. Its 12,194 members currently have $701.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, EVANGELICAL CHRISTIAN 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 major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a buffer against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

EVANGELICAL CHRISTIAN fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 8 out of a possible 30 points.

EVANGELICAL CHRISTIAN had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets suggests a credit union may have to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, EVANGELICAL CHRISTIAN scored 40 out of a possible 40 points, exceeding the national average of 38.15 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

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

EVANGELICAL CHRISTIAN scored 12 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

One sign that EVANGELICAL CHRISTIAN is running ahead of its peers in this area was its earnings ratio of 6.00 percent in our test, higher 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.