Safe and Sound

EAGLE COMMUNITY

LAKE FOREST, CA
5
Star Rating
LAKE FOREST, CA-based EAGLE COMMUNITY is an NCUA-insured credit union started in 1937. As of December 31, 2017, the credit union had assets of $245.8 million.

Thanks to the work of 64 full-time employees, the credit union has amassed loans and leases worth $157.3 million. EAGLE COMMUNITY's 19,676 members currently have $218.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EAGLE COMMUNITY 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

EAGLE COMMUNITY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

EAGLE COMMUNITY's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with large numbers of these types of assets may eventually be forced to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

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

EAGLE COMMUNITY's ratio of troubled assets was 0.00 percent in our test, lower than 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 long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them 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 test of earnings, EAGLE COMMUNITY scored 26 out of a possible 30, beating the national average of 10.11.

EAGLE COMMUNITY 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.