Safe and Sound

MISSION CITY

SANTA CLARA, CA
4
Star Rating
Founded in 1959, MISSION CITY is an NCUA-insured credit union based in SANTA CLARA, CA. As of December 31, 2017, the credit union held assets of $100.4 million.

Thanks to the efforts of 15 full-time employees, the credit union has amassed loans and leases worth $61.7 million. Its 4,833 members currently have $91.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MISSION CITY 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

MISSION CITY received a score of 6 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

MISSION CITY had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be required to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

MISSION CITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

Troubled assets made up 0.00 percent of MISSION CITY's total assets 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 has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

MISSION CITY beat the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

MISSION CITY had an earnings ratio of 0.00 percent in our test, better 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.