Safe and Sound

HIGH SIERRA

BISHOP, CA
4
Star Rating
HIGH SIERRA is a BISHOP, CA-based, NCUA-insured credit union founded in 1956. As of December 31, 2017, the credit union had assets of $12.9 million.

Members have $4.1 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $4.1 million. Its 684 members currently have $11.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HIGH SIERRA 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 evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, HIGH SIERRA scored 18 out of a possible 30 points, above the national average of 15.65.

HIGH SIERRA appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its equity buffer. 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, HIGH SIERRA scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

HIGH SIERRA scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

HIGH SIERRA had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.