Safe and Sound

UNIVERSITY & STATE EMPLOYEES

San Diego, CA
4
Star Rating
San Diego, CA-based UNIVERSITY & STATE EMPLOYEES is an NCUA-insured credit union started in 1936. The credit union holds $909.1 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 150 full-time employees, the credit union holds loans and leases worth $610.9 million. Its 62,049 members currently have $809.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNIVERSITY & STATE EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, UNIVERSITY & STATE EMPLOYEES received a score of 10 out of a possible 30 points, failing to reach the national average of 15.26.

UNIVERSITY & STATE EMPLOYEES had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, shrinking its equity buffer. 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 lower earnings and potentially more risk of a failure in the future.

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

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

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, UNIVERSITY & STATE EMPLOYEES scored 10 out of a possible 30, below the national average of 10.31.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 5.00 percent in our test, higher 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.