Safe and Sound

CENTRAL COAST

Seaside, CA
3
Star Rating
Founded in 1961, CENTRAL COAST is an NCUA-insured credit union based in SEASIDE, CA. Regulatory filings show the credit union having assets of $140.9 million, as of December 31, 2017.

Members have $60.8 million on deposit tended by 36 full-time employees. With that footprint, the credit union currently holds loans and leases worth $60.8 million. CENTRAL COAST's 12,127 members currently have $129.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL COAST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It acts as a cushion against losses and as protection for members during times of economic instability for the credit union. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, CENTRAL COAST received a score of 6 out of a possible 30 points, below the national average of 15.65.

CENTRAL COAST appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

CENTRAL COAST 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 .

CENTRAL COAST's ratio of troubled assets was 0.00 percent in our test, lower than 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 may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

CENTRAL COAST underperformed the average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One indication that CENTRAL COAST is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.