Safe and Sound

THE GOLDEN 1

SACRAMENTO, CA
5
Star Rating
THE GOLDEN 1 is a SACRAMENTO, CA-based, NCUA-insured credit union that opened its doors in 1933. As of June 30, 2017, the credit union had assets of $11.16 billion.

Members have $7.81 billion on deposit tended by 1,551 full-time employees. With that footprint, the credit union currently holds loans and leases worth $7.81 billion. Its 875,026 members currently have $9.76 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, THE GOLDEN 1 exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial resilience. It acts as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, THE GOLDEN 1 received a score of 14 out of a possible 30 points, falling short of the national average of 15.26.

THE GOLDEN 1 had a capitalization ratio of 11.00 percent in our test, less than the average for all credit unions, a sign that it's on less solid financial footing 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 problem assets, such as past-due loans.

Having large numbers of these types of assets may eventually force a credit union to use capital to cover 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 reduced earnings and potentially more risk of a failure in the future.

THE GOLDEN 1 did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 2.00 percent of THE GOLDEN 1's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

THE GOLDEN 1 scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.31.

The credit union had an earnings ratio of 8.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.