Safe and Sound

UNION PACIFIC CALIFORNIA EMP

FULLERTONLOS AL, CA
4
Star Rating
UNION PACIFIC CALIFORNIA EMP is a Fullerton, CA-based, NCUA-insured credit union that opened its doors in 1935. As of December 31, 2017, the credit union had assets of $7.8 million.

The credit union has amassed loans and leases worth $4.9 million. UNION PACIFIC CALIFORNIA EMP's 1,766 members currently have $7.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNION PACIFIC CALIFORNIA EMP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion 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, more capital is better.

UNION PACIFIC CALIFORNIA EMP received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

UNION PACIFIC CALIFORNIA EMP appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, shrinking its equity cushion. 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 depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, UNION PACIFIC CALIFORNIA EMP scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

UNION PACIFIC CALIFORNIA EMP fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.