Safe and Sound

SAN DIEGO METROPOLITAN

SAN DIEGO, CA
4
Star Rating
SAN DIEGO METROPOLITAN is an NCUA-insured credit union founded in 1934 and currently headquartered in SAN DIEGO, CA. As of June 30, 2017, the credit union held assets of $271.0 million.

Members have $195.7 million on deposit tended by 73 full-time employees. With that footprint, the credit union holds loans and leases worth $195.7 million. Its 18,128 members currently have $237.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SAN DIEGO METROPOLITAN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It acts as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

SAN DIEGO METROPOLITAN received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.26.

SAN DIEGO METROPOLITAN appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

SAN DIEGO METROPOLITAN scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.15.

The credit union's ratio of problem assets was 9.00 percent in our test, higher than the national average and a potential area of concern.

Earnings score

How successful a credit union is at earning money affects 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 prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

SAN DIEGO METROPOLITAN outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 9.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.