Safe and Sound

XCEED FINANCIAL

EL SEGUNDO, CA
3
Star Rating
EL SEGUNDO, CA-based XCEED FINANCIAL is an NCUA-insured credit union started in 1964. Regulatory filings show the credit union having assets of $948.6 million, as of June 30, 2017.

Members have $780.9 million on deposit tended by 228 full-time employees. With that footprint, the credit union holds loans and leases worth $780.9 million. Its 65,646 members currently have $804.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, XCEED FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is essential. When it comes to safety and soundness, the higher the capital, the better.

XCEED FINANCIAL scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

XCEED FINANCIAL's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a future failure.

XCEED FINANCIAL exceeded the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 5.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, XCEED FINANCIAL scored 0 out of a possible 30, coming in below the national average of 10.31.

One indication that XCEED FINANCIAL is running behind its peers in this area was its earnings ratio of 0.00 percent in our test, below 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.