Safe and Sound

FOOTHILL

ARCADIA, CA
5
Star Rating
FOOTHILL is an NCUA-insured credit union founded in 1958 and currently headquartered in ARCADIA, CA. Regulatory filings show the credit union having assets of $420.2 million, as of December 31, 2017.

With 67 full-time employees, the credit union currently holds loans and leases worth $231.3 million. Its 25,963 members currently have $365.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FOOTHILL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate 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 an institution's financial resilience, capital is important. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

FOOTHILL scored below the national average of 15.65 on our test to measure capital adequacy, scoring 14 out of a possible 30 points.

FOOTHILL had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, reducing its cushion of equity. 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, decreasing earnings and increasing the risk of a failure in the future.

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

The credit union's ratio of problem 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

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

FOOTHILL beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One sign that FOOTHILL is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.