Safe and Sound

COMMUNITY C.U. OF SO. HUMBOLDT

GARBERVILLE, CA
5
Star Rating
Founded in 1980, COMMUNITY C.U. OF SO. HUMBOLDT is an NCUA-insured credit union based in GARBERVILLE, CA. As of December 31, 2017, the credit union held assets of $97.1 million.

Members have $65.4 million on deposit tended by 35 full-time employees. With that footprint, the credit union currently holds loans and leases worth $65.4 million. COMMUNITY C.U. OF SO. HUMBOLDT's 5,596 members currently have $84.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY C.U. OF SO. HUMBOLDT 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 major criteria Bankrate used to grade U.S. 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 cushion against losses and affords protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, COMMUNITY C.U. OF SO. HUMBOLDT received a score of 14 out of a possible 30 points, failing to reach the national average of 15.65.

COMMUNITY C.U. OF SO. HUMBOLDT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets could eventually require a credit union to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, COMMUNITY C.U. OF SO. HUMBOLDT scored 40 out of a possible 40 points, better than the national average of 38.09 points.

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

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

COMMUNITY C.U. OF SO. HUMBOLDT received above-average marks on Bankrate's earnings test, achieving a score of 22 out of a possible 30.

One indication that the credit union 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.