Safe and Sound

TUCOEMAS

VISALIA, CA
4
Star Rating
TUCOEMAS is an NCUA-insured credit union started in 1948 and currently based in VISALIA, CA. Regulatory filings show the credit union having assets of $228.7 million, as of June 30, 2017.

Members have $158.8 million on deposit tended by 72 full-time employees. With that footprint, the credit union holds loans and leases worth $158.8 million. TUCOEMAS's 29,092 members currently have $214.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TUCOEMAS 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 key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

TUCOEMAS received a score of 4 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.26.

TUCOEMAS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

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

TUCOEMAS's ratio of troubled assets was 5.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

TUCOEMAS outperformed the average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 7.00 percent in our test, better 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.