Safe and Sound

BAY

Capitola, CA
4
Star Rating
Started in 1957, BAY is an NCUA-insured credit union based in Capitola, CA. Regulatory filings show the credit union having $935.3 million in assets, as of December 31, 2017.

Thanks to the work of 204 full-time employees, the credit union has amassed loans and leases worth $567.3 million. BAY's 69,916 members currently have $839.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BAY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

BAY fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

BAY's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, BAY scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A lower-than-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 ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, BAY scored 20 out of a possible 30, exceeding the national average of 10.11.

One sign that BAY is doing better than its peers in this area was its earnings ratio of 0.00 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.