Safe and Sound

STAR HARBOR

Rancho Domingue, CA
3
Star Rating
STAR HARBOR is an NCUA-insured credit union started in 1956 and currently headquartered in Rancho Domingue, CA. Regulatory filings show the credit union having assets of $14.2 million, as of June 30, 2017.

The credit union currently holds loans and leases worth $8.0 million. Its 3,017 members currently have $12.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, STAR HARBOR exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

STAR HARBOR beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, racking up 20 out of a possible 30 points.

STAR HARBOR's capitalization ratio of 14.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

STAR HARBOR scored 28 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.15.

An above-average ratio of troubled assets of 27.00 percent in our test was a potential cause for concern for the credit union.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, STAR HARBOR scored 0 out of a possible 30, falling short of the national average of 10.31.

One sign that STAR HARBOR is performing behind its peers in this area was its earnings ratio of -52.00 percent in our test, less 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.