Safe and Sound

L. A. MISSION

SAN FERNANDO, CA
1
Star Rating
SAN FERNANDO, CA-based L. A. MISSION is an NCUA-insured credit union founded in 1971. As of December 31, 2017, the credit union had assets of $6.9 million.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $1.0 million. Its 1,403 members currently have $6.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, L. A. MISSION exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It acts as a cushion against losses and as protection for members during periods of financial instability for the credit union. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, L. A. MISSION received a score of 6 out of a possible 30 points, below the national average of 15.65.

L. A. MISSION's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, a sign that it's weaker than its peers.

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 past-due loans.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

L. A. MISSION did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

L. A. MISSION scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

L. A. MISSION 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.