Safe and Sound

NORTH COUNTY

San Diego, CA
3
Star Rating
NORTH COUNTY is a San Diego, CA-based, NCUA-insured credit union dating back to 1953. Regulatory filings show the credit union having assets of $68.0 million, as of June 30, 2017.

With 13 full-time employees, the credit union has amassed loans and leases worth $43.4 million. NORTH COUNTY's 4,541 members currently have $62.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NORTH COUNTY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is useful. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, NORTH COUNTY received a score of 8 out of a possible 30 points, falling short of the national average of 15.26.

NORTH COUNTY appears to be less well prepared for financial trouble 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 try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with large numbers of these kinds of assets may eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

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

Troubled assets made up 2.00 percent of the credit union's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, NORTH COUNTY scored 2 out of a possible 30, falling short of the national average of 10.31.

One indication that NORTH COUNTY is performing behind its peers in this area was its earnings ratio of 0.00 percent in our test, lower 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.