Safe and Sound

L. A. ELECTRICAL WORKERS CREDIT UN.

Pasadena, CA
4
Star Rating
Founded in 1953, L. A. ELECTRICAL WORKERS CREDIT UN. is an NCUA-insured credit union headquartered in Pasadena, CA. The credit union holds assets of $43.1 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 7 full-time employees, the credit union currently holds loans and leases worth $4.9 million. L. A. ELECTRICAL WORKERS CREDIT UN.'s 3,917 members currently have $33.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, L. A. ELECTRICAL WORKERS CREDIT UN. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides 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 strength. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, L. A. ELECTRICAL WORKERS CREDIT UN. racked up 30 out of a possible 30 points, beating the national average of 15.65.

L. A. ELECTRICAL WORKERS CREDIT UN. had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect 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 types of assets could eventually be required to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, L. A. ELECTRICAL WORKERS CREDIT UN. scored 40 out of a possible 40 points, above the national average of 38.09 points.

L. A. ELECTRICAL WORKERS CREDIT UN.'s ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, L. A. ELECTRICAL WORKERS CREDIT UN. scored 0 out of a possible 30, less than the national average of 10.11.

One indication that L. A. ELECTRICAL WORKERS CREDIT UN. is running ahead of 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.