Safe and Sound

LASSEN COUNTY

Susanville, CA
5
Star Rating
Susanville, CA-based LASSEN COUNTY is an NCUA-insured credit union started in 1966. The credit union has $73.8 million in assets, according to June 30, 2017, regulatory filings.

With 14 full-time employees, the credit union has amassed loans and leases worth $42.3 million. LASSEN COUNTY's 4,844 members currently have $56.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, LASSEN COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is key. It works as a bulwark against losses and as protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, LASSEN COUNTY racked up 24 out of a possible 30 points, exceeding the national average of 15.26.

LASSEN COUNTY appears to be on more solid financial footing than its peers, with a capitalization ratio of 17.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to absorb losses, cutting down on its buffer of equity. 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, resulting in depressed earnings and potentially more risk of a future failure.

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

LASSEN COUNTY's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, LASSEN COUNTY scored 6 out of a possible 30, coming in below the national average of 10.31.

One sign that LASSEN COUNTY is beating its peers in this area was its earnings ratio of 2.00 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.