Safe and Sound

CALIFORNIA ADVENTIST

Glendale, CA
4
Star Rating
Founded in 1952, CALIFORNIA ADVENTIST is an NCUA-insured credit union based in Glendale, CA. Regulatory filings show the credit union having assets of $49.8 million, as of December 31, 2017.

Thanks to the work of 6 full-time employees, the credit union currently holds loans and leases worth $17.0 million. CALIFORNIA ADVENTIST's 3,079 members currently have $43.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CALIFORNIA ADVENTIST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

CALIFORNIA ADVENTIST exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 16 out of a possible 30 points.

CALIFORNIA ADVENTIST had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.

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

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects 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 trouble. Conversely, losses take away from a credit union's ability to do those things.

CALIFORNIA ADVENTIST received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.