Safe and Sound

USC

Los Angeles, CA
4
Star Rating
Started in 1973, USC is an NCUA-insured credit union based in Los Angeles, CA. As of June 30, 2017, the credit union held assets of $494.4 million.

Thanks to the efforts of 79 full-time employees, the credit union currently holds loans and leases worth $408.7 million. USC's 68,164 members currently have $450.6 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, USC received a score of 6 out of a possible 30 points, failing to reach the national average of 15.26.

USC's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these types of assets suggests a credit union may have to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a failure in the future.

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

The credit union's ratio of problem assets was 7.00 percent in our test, identical to the national average.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

USC beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

USC had an earnings ratio of 9.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.