Safe and Sound

CALIFORNIA STATE & FED EMP #20

EUREKA, CA
5
Star Rating
EUREKA, CA-based CALIFORNIA STATE & FED EMP #20 is an NCUA-insured credit union started in 1951. Regulatory filings show the credit union having $136.2 million in assets, as of December 31, 2017.

Members have $61.1 million on deposit tended by 7 full-time employees. With that footprint, the credit union currently holds loans and leases worth $61.1 million. CALIFORNIA STATE & FED EMP #20's 5,396 members currently have $116.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CALIFORNIA STATE & FED EMP #20 exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

CALIFORNIA STATE & FED EMP #20 exceeded the national average of 15.65 points on our test to measure capital adequacy, racking up 20 out of a possible 30 points.

CALIFORNIA STATE & FED EMP #20 appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets could eventually require a credit union to use capital to cover 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 money, resulting in reduced earnings and potentially more risk of a failure in the future.

CALIFORNIA STATE & FED EMP #20 beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled 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 safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, CALIFORNIA STATE & FED EMP #20 scored 12 out of a possible 30, beating the national average of 10.11.

CALIFORNIA STATE & FED EMP #20 had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.