Safe and Sound

L.A. HEALTHCARE

LOS ANGELES, CA
3
Star Rating
L.A. HEALTHCARE is a LOS ANGELES, CA-based, NCUA-insured credit union started in 1964. As of December 31, 2017, the credit union held assets of $15.6 million.

With 5 full-time employees, the credit union has amassed loans and leases worth $6.6 million. Its 2,524 members currently have $14.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, L.A. HEALTHCARE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, more capital is preferred.

L.A. HEALTHCARE received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

L.A. HEALTHCARE's capitalization ratio of 6.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with a large number of these types of assets may eventually have to use capital to absorb losses, reducing 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 risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

L.A. HEALTHCARE received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.