Safe and Sound

SAN JOAQUIN POWER EMPLOYEES

FRESNO, CA
5
Star Rating
SAN JOAQUIN POWER EMPLOYEES is a FRESNO, CA-based, NCUA-insured credit union started in 1934. The credit union has $138.8 million in assets, according to December 31, 2017, regulatory filings.

With 6 full-time employees, the credit union holds loans and leases worth $94.7 million. Its 6,433 members currently have $113.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAN JOAQUIN POWER EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during periods of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

SAN JOAQUIN POWER EMPLOYEES scored 24 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

SAN JOAQUIN POWER EMPLOYEES had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

SAN JOAQUIN POWER EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

SAN JOAQUIN POWER EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

SAN JOAQUIN POWER EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher 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.