Safe and Sound

ORANGE COUNTY'S

Santa Ana, CA
4
Star Rating
ORANGE COUNTY'S is an NCUA-insured credit union founded in 1938 and currently headquartered in Santa Ana, CA. Regulatory filings show the credit union having $1.56 billion in assets, as of December 31, 2017.

Thanks to the efforts of 282 full-time employees, the credit union has amassed loans and leases worth $1.09 billion. Its 104,839 members currently have $1.35 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ORANGE COUNTY'S exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

ORANGE COUNTY'S came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

ORANGE COUNTY'S had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker 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 past-due loans.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover 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 thus aren't earning money, reducing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, ORANGE COUNTY'S scored 40 out of a possible 40 points, better than the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, ORANGE COUNTY'S scored 18 out of a possible 30, better than the national average of 10.11.

ORANGE COUNTY'S had an earnings ratio of 0.00 percent in our test, higher than 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.