Safe and Sound

LOGIX

Burbank, CA
5
Star Rating
LOGIX is an NCUA-insured credit union started in 1937 and currently based in Burbank, CA. The credit union holds $5.11 billion in assets, according to June 30, 2017, regulatory filings.

With 616 full-time employees, the credit union holds loans and leases worth $4.49 billion. LOGIX's 178,747 members currently have $4.09 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, LOGIX exhibited a superior condition, earning a full 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 grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

LOGIX achieved a score of 22 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.26.

LOGIX had a capitalization ratio of 16.00 percent in our test, above the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

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

LOGIX's ratio of problem assets was 3.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

LOGIX scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 9.00 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.