Safe and Sound

SAN DIEGO METROPOLITAN

SAN DIEGO, CA
4
Star Rating
SAN DIEGO METROPOLITAN is an NCUA-insured credit union founded in 1934 and currently headquartered in SAN DIEGO, CA. As of December 31, 2017, the credit union had assets of $276.5 million.

Thanks to the efforts of 73 full-time employees, the credit union currently holds loans and leases worth $217.9 million. Its 19,046 members currently have $237.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAN DIEGO METROPOLITAN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score American 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 affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an essential measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

SAN DIEGO METROPOLITAN came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

SAN DIEGO METROPOLITAN had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, cutting down on its cushion 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.

SAN DIEGO METROPOLITAN scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

SAN DIEGO METROPOLITAN's ratio of problem 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

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, SAN DIEGO METROPOLITAN scored 20 out of a possible 30, beating out the national average of 10.11.

One sign that SAN DIEGO METROPOLITAN is doing better than 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.