Safe and Sound

EAST COUNTY SCHOOLS

EL CAJON, CA
4
Star Rating
Founded in 1956, EAST COUNTY SCHOOLS is an NCUA-insured credit union based in EL CAJON, CA. Regulatory filings show the credit union having $109.4 million in assets, as of December 31, 2017.

With 17 full-time employees, the credit union currently holds loans and leases worth $74.3 million. EAST COUNTY SCHOOLS's 4,342 members currently have $94.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EAST COUNTY SCHOOLS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a buffer against losses and provides protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

EAST COUNTY SCHOOLS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

EAST COUNTY SCHOOLS had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, EAST COUNTY SCHOOLS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

EAST COUNTY SCHOOLS beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.