Safe and Sound

YOLO

WOODLAND, CA
5
Star Rating
YOLO is an NCUA-insured credit union started in 1954 and currently based in WOODLAND, CA. As of June 30, 2017, the credit union held assets of $277.3 million.

With 59 full-time employees, the credit union holds loans and leases worth $182.1 million. Its 17,763 members currently have $246.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, YOLO exhibited a superior condition, earning a full 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 score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

YOLO fell below the national average of 15.26 on our test to measure capital adequacy, racking up 12 out of a possible 30 points.

YOLO had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

YOLO scored 20 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.31.

One sign that YOLO is beating its peers in this area was its earnings ratio of 11.00 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.