Safe and Sound

GLENDALE AREA SCHOOLS

GLENDALE, CA
5
Star Rating
GLENDALE, CA-based GLENDALE AREA SCHOOLS is an NCUA-insured credit union founded in 1937. Regulatory filings show the credit union having $348.4 million in assets, as of December 31, 2017.

With 22 full-time employees, the credit union currently holds loans and leases worth $86.6 million. Its 11,211 members currently have $298.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GLENDALE AREA SCHOOLS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to score 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 cushion against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is an essential measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

GLENDALE AREA SCHOOLS achieved a score of 20 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

GLENDALE AREA SCHOOLS appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets suggests a credit union may have to use capital to absorb losses, diminishing its cushion 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, reducing earnings and increasing the risk of a future failure.

GLENDALE AREA SCHOOLS did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, GLENDALE AREA SCHOOLS scored 12 out of a possible 30, beating the national average of 10.11.

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, 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.