Safe and Sound

SAN FERNANDO VALLEY JAPANESE

Northridge, CA
4
Star Rating
Started in 1952, SAN FERNANDO VALLEY JAPANESE is an NCUA-insured credit union based in Northridge, CA. As of December 31, 2017, the credit union had assets of $873,121.

The credit union currently holds loans and leases worth $552,765. Its 235 members currently have $653,958 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAN FERNANDO VALLEY JAPANESE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score 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 affords protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial stability, capital is key. From a safety and soundness perspective, the more capital, the better.

SAN FERNANDO VALLEY JAPANESE scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

SAN FERNANDO VALLEY JAPANESE's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

SAN FERNANDO VALLEY JAPANESE scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SAN FERNANDO VALLEY JAPANESE scored 0 out of a possible 30, falling short of the national average of 10.11.

One sign that SAN FERNANDO VALLEY JAPANESE is running ahead of 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.