Safe and Sound

SUNKIST EMPLOYEES

Valencia, CA
5
Star Rating
Founded in 1941, SUNKIST EMPLOYEES is an NCUA-insured credit union based in Valencia, CA. As of December 31, 2017, the credit union had assets of $4.4 million.

The credit union holds loans and leases worth $1.0 million. Its 716 members currently have $3.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SUNKIST EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It works as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

SUNKIST EMPLOYEES exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

SUNKIST EMPLOYEES had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may eventually have 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 no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

SUNKIST EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can 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 have less ability to do those things.

SUNKIST EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

SUNKIST EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.