Safe and Sound

HUNTINGTON BEACH CTY EMPLOYEES

Huntington Beac, CA
4
Star Rating
Huntington Beac, CA-based HUNTINGTON BEACH CTY EMPLOYEES is an NCUA-insured credit union founded in 1953. Regulatory filings show the credit union having $55.8 million in assets, as of December 31, 2017.

Thanks to the work of 5 full-time employees, the credit union has amassed loans and leases worth $13.1 million. Its 2,742 members currently have $49.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HUNTINGTON BEACH CTY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is useful. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

HUNTINGTON BEACH CTY EMPLOYEES scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 12 out of a possible 30 points.

HUNTINGTON BEACH CTY EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

HUNTINGTON BEACH CTY EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

A below-average ratio of troubled 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 ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, HUNTINGTON BEACH CTY EMPLOYEES scored 6 out of a possible 30, below the national average of 10.11.

HUNTINGTON BEACH CTY EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.