Safe and Sound

SAN FRANCISCO LEE

SAN FRANCISCO, CA
5
Star Rating
Founded in 1964, SAN FRANCISCO LEE is an NCUA-insured credit union headquartered in SAN FRANCISCO, CA. As of December 31, 2017, the credit union had assets of $12.0 million.

The credit union currently holds loans and leases worth $4.1 million. Its 766 members currently have $7.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAN FRANCISCO LEE exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a valuable measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

SAN FRANCISCO LEE achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

SAN FRANCISCO LEE had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

SAN FRANCISCO LEE exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, SAN FRANCISCO LEE scored 4 out of a possible 30, below the national average of 10.11.

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