Safe and Sound

MERCED SCHOOL EMPLOYEES

MERCED, CA
4
Star Rating
MERCED SCHOOL EMPLOYEES is a MERCED, CA-based, NCUA-insured credit union dating back to 1954. The credit union holds $482.4 million in assets, according to December 31, 2017, regulatory filings.

With 98 full-time employees, the credit union currently holds loans and leases worth $176.3 million. MERCED SCHOOL EMPLOYEES's 39,013 members currently have $434.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MERCED SCHOOL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

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

MERCED SCHOOL EMPLOYEES fell below the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

MERCED SCHOOL EMPLOYEES's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

MERCED SCHOOL 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 .

A lower-than-average ratio of troubled 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 earnings performance affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

MERCED SCHOOL EMPLOYEES outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

MERCED SCHOOL EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's running ahead of 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.