Safe and Sound

LONG BEACH CITY EMPLOYEES

Signal Hill, CA
3
Star Rating
Signal Hill, CA-based LONG BEACH CITY EMPLOYEES is an NCUA-insured credit union founded in 1936. Regulatory filings show the credit union having $298.9 million in assets, as of December 31, 2017.

With 23 full-time employees, the credit union currently holds loans and leases worth $94.2 million. Its 8,711 members currently have $270.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LONG BEACH CITY EMPLOYEES exhibited a generally satisfactory condition, earning 3 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is key. When looking at safety and soundness, the more capital, the better.

LONG BEACH CITY EMPLOYEES received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

LONG BEACH CITY EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets means a credit union could eventually have 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 interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

LONG BEACH CITY EMPLOYEES scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

LONG BEACH CITY EMPLOYEES's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

LONG BEACH CITY EMPLOYEES scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that the credit union is doing better than 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.