Safe and Sound

BAKERSFIELD CITY EMPLOYEES

BAKERSFIELD, CA
3
Star Rating
Founded in 1936, BAKERSFIELD CITY EMPLOYEES is an NCUA-insured credit union based in BAKERSFIELD, CA. The credit union has assets of $31.8 million, according to December 31, 2017, regulatory filings.

Members have $16.2 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $16.2 million. BAKERSFIELD CITY EMPLOYEES's 2,419 members currently have $28.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BAKERSFIELD CITY EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It works as a cushion against losses and affords protection for members during times of economic instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

BAKERSFIELD CITY EMPLOYEES fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 8 out of a possible 30 points.

BAKERSFIELD CITY EMPLOYEES had a capitalization ratio of 8.00 percent in our test, 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.

Having lots of these types of assets means a credit union may eventually have to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, BAKERSFIELD CITY EMPLOYEES scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

BAKERSFIELD CITY EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 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.