Safe and Sound

CALIFORNIA COMMUNITY

Sacramento, CA
4
Star Rating
CALIFORNIA COMMUNITY is an NCUA-insured credit union founded in 1939 and currently headquartered in Sacramento, CA. Regulatory filings show the credit union having $61.7 million in assets, as of December 31, 2017.

With 13 full-time employees, the credit union currently holds loans and leases worth $24.5 million. CALIFORNIA COMMUNITY's 6,026 members currently have $53.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CALIFORNIA COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of 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 an institution's financial fortitude, capital is essential. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

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

CALIFORNIA COMMUNITY had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually be forced to use capital to cover losses, decreasing 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.

CALIFORNIA COMMUNITY exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

CALIFORNIA COMMUNITY received below-average marks on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.