Safe and Sound

KEYPOINT

Santa Clara, CA
4
Star Rating
KEYPOINT is an NCUA-insured credit union started in 1979 and currently headquartered in Santa Clara, CA. The credit union holds assets of $1.20 billion, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 171 full-time employees, the credit union has amassed loans and leases worth $962.5 million. Its 54,031 members currently have $908.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KEYPOINT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, more capital is preferred.

KEYPOINT received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.26.

KEYPOINT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

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 have to use capital to cover losses, shrinking its equity cushion. 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 depressed earnings and potentially more risk of a failure in the future.

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

A below-average ratio of troubled assets of 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

KEYPOINT scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.31.

One sign that KEYPOINT is beating its peers in this area was its earnings ratio of 4.00 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.