Safe and Sound

TRAVIS

VACAVILLE, CA
4
Star Rating
VACAVILLE, CA-based TRAVIS is an NCUA-insured credit union founded in 1951. The credit union holds assets of $2.88 billion, according to June 30, 2017, regulatory filings.

With 626 full-time employees, the credit union currently holds loans and leases worth $2.07 billion. Its 197,224 members currently have $2.40 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TRAVIS exhibited a good condition, earning 4 out of 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 score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It works as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

TRAVIS fell short of the national average of 15.26 on our test to measure capital adequacy, racking up 14 out of a possible 30 points.

TRAVIS appears to be weaker than its peers in this area, with a capitalization ratio of 11.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, diminishing 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.

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

Troubled assets made up 3.00 percent of TRAVIS'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 profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

TRAVIS scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, better than 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.