Safe and Sound

VONS EMPLOYEES

EL MONTE, CA
5
Star Rating
Started in 1954, VONS EMPLOYEES is an NCUA-insured credit union based in EL MONTE, CA. The credit union holds assets of $498.2 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 101 full-time employees, the credit union holds loans and leases worth $279.9 million. Its 44,068 members currently have $387.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, VONS EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial fortitude. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is preferred.

VONS EMPLOYEES achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.26.

VONS EMPLOYEES had a capitalization ratio of 21.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets suggests a credit union may eventually have to use capital to absorb losses, shrinking its cushion 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.

VONS EMPLOYEES beat out the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

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 cushion, or use them to address problematic loans, likely 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.

VONS EMPLOYEES exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

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, above 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.