Safe and Sound

FIRST CALIFORNIA

FRESNO, CA
3
Star Rating
FRESNO, CA-based FIRST CALIFORNIA is an NCUA-insured credit union started in 1982. The credit union has $89.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $43.2 million on deposit tended by 17 full-time employees. With that footprint, the credit union holds loans and leases worth $43.2 million. FIRST CALIFORNIA's 9,668 members currently have $80.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST CALIFORNIA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial strength, capital is crucial. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, FIRST CALIFORNIA received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

FIRST CALIFORNIA had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

A credit union with a large number of these types of assets could eventually have to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can 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. Losses, on the other hand, diminish a credit union's ability to do those things.

FIRST CALIFORNIA scored 6 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that FIRST CALIFORNIA is outperforming 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.