Safe and Sound

CHULA VISTA CITY EMPLOYEES

Chula Vista, CA
2
Star Rating
Founded in 1967, CHULA VISTA CITY EMPLOYEES is an NCUA-insured credit union based in Chula Vista, CA. As of December 31, 2017, the credit union held assets of $2.8 million.

The credit union holds loans and leases worth $1.8 million. CHULA VISTA CITY EMPLOYEES's 575 members currently have $2.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHULA VISTA CITY EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is essential. When looking at safety and soundness, the more capital, the better.

CHULA VISTA CITY EMPLOYEES finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 6 out of a possible 30 points.

CHULA VISTA CITY EMPLOYEES's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover losses, shrinking its cushion of equity. 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, reducing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, CHULA VISTA CITY EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, CHULA VISTA CITY EMPLOYEES scored 0 out of a possible 30, failing to reach the national average of 10.11.

One indication that CHULA VISTA CITY EMPLOYEES is doing better than 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.