Safe and Sound

ONTARIO PUBLIC EMPLOYEES

ONTARIO, CA
2
Star Rating
ONTARIO PUBLIC EMPLOYEES is an NCUA-insured credit union started in 1959 and currently based in ONTARIO, CA. Regulatory filings show the credit union having assets of $20.8 million, as of December 31, 2017.

With 6 full-time employees, the credit union has amassed loans and leases worth $9.7 million. Its 2,182 members currently have $19.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ONTARIO PUBLIC EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that an institution's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

ONTARIO PUBLIC EMPLOYEES finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 4 out of a possible 30 points.

ONTARIO PUBLIC EMPLOYEES's capitalization ratio of 4.00 percent in our test was worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets means a credit union may have to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

ONTARIO PUBLIC EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

ONTARIO PUBLIC EMPLOYEES scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that ONTARIO PUBLIC EMPLOYEES is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.