Safe and Sound

FINANCIAL BENEFITS

ALAMEDA, CA
3
Star Rating
Founded in 1931, FINANCIAL BENEFITS is an NCUA-insured credit union headquartered in ALAMEDA, CA. Regulatory filings show the credit union having assets of $20.1 million, as of June 30, 2017.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $13.8 million. FINANCIAL BENEFITS's 2,347 members currently have $18.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FINANCIAL BENEFITS exhibited a generally satisfactory condition, earning 3 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is key. When looking at safety and soundness, the more capital, the better.

FINANCIAL BENEFITS scored 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.

FINANCIAL BENEFITS's capitalization ratio of 7.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a failure in the future.

FINANCIAL BENEFITS beat out the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .


Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, FINANCIAL BENEFITS scored 0 out of a possible 30, coming in below the national average of 10.31.

FINANCIAL BENEFITS had an earnings ratio of -6.00 percent in our test, lower than the average for all credit unions, suggesting that it's underperforming 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.