Safe and Sound

CHAFFEY

UPLAND, CA
4
Star Rating
Founded in 1964, CHAFFEY is an NCUA-insured credit union based in UPLAND, CA. The credit union has $146.5 million in assets, according to December 31, 2017, regulatory filings.

Members have $81.4 million on deposit tended by 36 full-time employees. With that footprint, the credit union has amassed loans and leases worth $81.4 million. CHAFFEY's 11,434 members currently have $125.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHAFFEY 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 important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It acts as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is better.

CHAFFEY fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

CHAFFEY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets suggests a credit union may have to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a future failure.

CHAFFEY 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, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

CHAFFEY scored 16 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

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, above 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.