Safe and Sound

CHEVRON

Oakland, CA
5
Star Rating
Oakland, CA-based CHEVRON is an NCUA-insured credit union founded in 1935. The credit union holds $3.16 billion in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 273 full-time employees, the credit union currently holds loans and leases worth $2.63 billion. CHEVRON's 108,908 members currently have $2.79 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHEVRON exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is crucial. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

CHEVRON received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

CHEVRON's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.

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

CHEVRON's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

CHEVRON scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

CHEVRON had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.