Safe and Sound

MOORE WEST

SAN LEANDRO, CA
2
Star Rating
MOORE WEST is an NCUA-insured credit union started in 1982 and currently based in SAN LEANDRO, CA. As of December 31, 2017, the credit union held assets of $16.0 million.

Members have $3.0 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $3.0 million. Its 1,116 members currently have $12.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOORE WEST exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an a credit union's financial strength, capital is useful. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, MOORE WEST received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

MOORE WEST had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these types of assets suggests a credit union may have to use capital to cover losses, shrinking its cushion of equity. 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, decreasing earnings and increasing the chances of a failure in the future.

MOORE WEST scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to 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, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

MOORE WEST underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

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 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.