Safe and Sound

ZION HILL BAPTIST CHURCH

LOS ANGELES, CA
2
Star Rating
ZION HILL BAPTIST CHURCH is an NCUA-insured credit union founded in 1969 and currently headquartered in LOS ANGELES, CA. The credit union has assets of $22,918, according to June 30, 2017, regulatory filings.

Its 141 members currently have $15,687 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $7,200.

Overall, Bankrate believes that, as of June 30, 2017, ZION HILL BAPTIST CHURCH exhibited a below-average condition, earning 2 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 U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the higher the capital, the better.

ZION HILL BAPTIST CHURCH achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.26.

ZION HILL BAPTIST CHURCH had a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with a large number of these types of assets may eventually be required to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, ZION HILL BAPTIST CHURCH scored 0 out of a possible 40 points, below the national average of 38.15 points.

Troubled assets made up 119.00 percent of ZION HILL BAPTIST CHURCH's total assets in our test, exceeding the national average and a potential cause for concern.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

ZION HILL BAPTIST CHURCH scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.31.

One sign that ZION HILL BAPTIST CHURCH is performing behind its peers in this area was its earnings ratio of -314.00 percent in our test, worse 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.