Safe and Sound

CAL STATE L.A.

LOS ANGELES, CA
5
Star Rating
LOS ANGELES, CA-based CAL STATE L.A. is an NCUA-insured credit union started in 1961. As of December 31, 2017, the credit union held assets of $49.9 million.

With 14 full-time employees, the credit union currently holds loans and leases worth $37.8 million. CAL STATE L.A.'s 4,682 members currently have $44.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAL STATE L.A. exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

CAL STATE L.A. fell short of the national average of 15.65 on our test to measure capital adequacy, racking up 12 out of a possible 30 points.

CAL STATE L.A. had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

CAL STATE L.A. scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, CAL STATE L.A. scored 18 out of a possible 30, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's running ahead of 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.