Safe and Sound

SANTA CRUZ COMMUNITY

Santa Cruz, CA
2
Star Rating
SANTA CRUZ COMMUNITY is a Santa Cruz, CA-based, NCUA-insured credit union dating back to 1977. Regulatory filings show the credit union having assets of $113.4 million, as of December 31, 2017.

Members have $87.3 million on deposit tended by 38 full-time employees. With that footprint, the credit union currently holds loans and leases worth $87.3 million. Its 12,908 members currently have $103.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SANTA CRUZ COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is preferred.

SANTA CRUZ COMMUNITY came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 6 out of a possible 30 points.

SANTA CRUZ COMMUNITY appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

SANTA CRUZ COMMUNITY fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 8 out of a possible 40 points .

SANTA CRUZ COMMUNITY's ratio of problem assets was 1.00 percent in our test, identical to the national average.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

SANTA CRUZ COMMUNITY outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

SANTA CRUZ COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.