Safe and Sound

NORTH COUNTY

San Diego, CA
3
Star Rating
NORTH COUNTY is a San Diego, CA-based, NCUA-insured credit union dating back to 1953. The credit union has $65.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $46.6 million on deposit tended by 13 full-time employees. With that footprint, the credit union holds loans and leases worth $46.6 million. NORTH COUNTY's 4,732 members currently have $59.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH COUNTY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did 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 is an important measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, NORTH COUNTY received a score of 8 out of a possible 30 points, failing to reach the national average of 15.65.

NORTH COUNTY's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually require a credit union to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, NORTH COUNTY scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

NORTH COUNTY scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.