Safe and Sound

SKYONE

HAWTHORNE, CA
2
Star Rating
Started in 1949, SKYONE is an NCUA-insured credit union headquartered in HAWTHORNE, CA. Regulatory filings show the credit union having $468.6 million in assets, as of December 31, 2017.

Members have $295.0 million on deposit tended by 86 full-time employees. With that footprint, the credit union has amassed loans and leases worth $295.0 million. Its 35,757 members currently have $421.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SKYONE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is valuable. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, SKYONE received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

SKYONE had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually have to use capital to cover losses, decreasing its buffer 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 diminished earnings and potentially more risk of a failure in the future.

SKYONE scored 36 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

A lower-than-average ratio of troubled 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 affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, SKYONE scored 0 out of a possible 30, lower than the national average of 10.11.

SKYONE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating 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.