Safe and Sound

MONROVIA CITY EMPLOYEES

MONROVIA, CA
4
Star Rating
Founded in 1954, MONROVIA CITY EMPLOYEES is an NCUA-insured credit union based in MONROVIA, CA. The credit union has $3.7 million in assets, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $1.6 million. Its 533 members currently have $2.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MONROVIA CITY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial resilience. It acts as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, MONROVIA CITY EMPLOYEES scored 16 out of a possible 30 points, better than the national average of 15.65.

MONROVIA CITY EMPLOYEES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these types of assets may eventually be forced to use capital to absorb losses, diminishing 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, decreasing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, MONROVIA CITY EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

MONROVIA CITY EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

MONROVIA CITY EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.