Safe and Sound

MATADORS COMMUNITY

Northridge, CA
5
Star Rating
MATADORS COMMUNITY is a Northridge, CA-based, NCUA-insured credit union started in 1963. Regulatory filings show the credit union having $224.7 million in assets, as of December 31, 2017.

With 42 full-time employees, the credit union currently holds loans and leases worth $189.5 million. Its 19,228 members currently have $194.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MATADORS COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is valuable. It works as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, the more capital, the better.

MATADORS COMMUNITY scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 14 out of a possible 30 points.

MATADORS COMMUNITY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having a large number of these kinds of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity cushion. 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 lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MATADORS COMMUNITY scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of MATADORS COMMUNITY's total assets in our test, beneath the national average and suggestive 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. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with 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.

On Bankrate's test of earnings, MATADORS COMMUNITY scored 24 out of a possible 30, better than the national average of 10.11.

One sign that the credit union is beating 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.