Safe and Sound

BEVERLY HILLS CITY EMPLOYEES

BEVERLY HILLS, CA
4
Star Rating
Started in 1954, BEVERLY HILLS CITY EMPLOYEES is an NCUA-insured credit union based in BEVERLY HILLS, CA. The credit union has assets of $20.6 million, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union currently holds loans and leases worth $8.1 million. BEVERLY HILLS CITY EMPLOYEES's 1,638 members currently have $17.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BEVERLY HILLS CITY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is crucial. It acts as a cushion against losses and provides protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, BEVERLY HILLS CITY EMPLOYEES racked up 16 out of a possible 30 points, better than the national average of 15.65.

BEVERLY HILLS CITY EMPLOYEES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a future failure.

BEVERLY HILLS CITY EMPLOYEES did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

BEVERLY HILLS CITY EMPLOYEES scored 12 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

BEVERLY HILLS CITY EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating its peers in this area.

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.