Safe and Sound

SILVERADO

ANGWIN, CA
4
Star Rating
ANGWIN, CA-based SILVERADO is an NCUA-insured credit union founded in 1953. As of June 30, 2017, the credit union held assets of $45.4 million.

Thanks to the efforts of 11 full-time employees, the credit union has amassed loans and leases worth $33.9 million. Its 4,264 members currently have $41.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SILVERADO exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is crucial. When it comes to safety and soundness, the more capital, the better.

SILVERADO finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 6 out of a possible 30 points.

SILVERADO 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, below the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, SILVERADO scored 20 out of a possible 30, exceeding the national average of 10.31.

One sign that SILVERADO is running ahead of its peers in this area was its earnings ratio of 12.00 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.