Safe and Sound

MEDIA CITY COMMUNITY

Burbank, CA
5
Star Rating
MEDIA CITY COMMUNITY is a Burbank, CA-based, NCUA-insured credit union dating back to 1936. Regulatory filings show the credit union having assets of $34.0 million, as of December 31, 2017.

Members have $15.8 million on deposit tended by 7 full-time employees. With that footprint, the credit union currently holds loans and leases worth $15.8 million. Its 2,545 members currently have $29.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEDIA CITY COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a useful measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

MEDIA CITY COMMUNITY achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

MEDIA CITY COMMUNITY had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

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

Having a large number of these types of assets suggests a credit union could have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

MEDIA CITY COMMUNITY beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

MEDIA CITY COMMUNITY scored 12 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

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