Safe and Sound

NORTHEAST COMMUNITY

SAN FRANCISCO, CA
4
Star Rating
Founded in 1981, NORTHEAST COMMUNITY is an NCUA-insured credit union based in SAN FRANCISCO, CA. As of December 31, 2017, the credit union held assets of $11.4 million.

Thanks to the work of 6 full-time employees, the credit union currently holds loans and leases worth $4.0 million. Its 1,274 members currently have $8.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHEAST COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial fortitude. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, NORTHEAST COMMUNITY racked up 18 out of a possible 30 points, beating the national average of 15.65.

NORTHEAST COMMUNITY had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these kinds of assets means a credit union could eventually have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

NORTHEAST COMMUNITY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

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

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, NORTHEAST COMMUNITY scored 4 out of a possible 30, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.