Safe and Sound

E-CENTRAL

PASADENA, CA
5
Star Rating
Founded in 1943, E-CENTRAL is an NCUA-insured credit union based in PASADENA, CA. Regulatory filings show the credit union having assets of $157.9 million, as of December 31, 2017.

Members have $107.1 million on deposit tended by 46 full-time employees. With that footprint, the credit union has amassed loans and leases worth $107.1 million. E-CENTRAL's 14,562 members currently have $126.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, E-CENTRAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, E-CENTRAL scored 28 out of a possible 30 points, better than the national average of 15.65.

E-CENTRAL had a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having large numbers of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, E-CENTRAL scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

E-CENTRAL's ratio of problem 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

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

E-CENTRAL scored 8 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One sign that E-CENTRAL 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.