Safe and Sound

F & A

MONTEREY PARK, CA
5
Star Rating
F & An is a MONTEREY PARK, CA-based, NCUA-insured credit union started in 1936. Regulatory filings show the credit union having assets of $1.59 billion, as of June 30, 2017.

Thanks to the work of 80 full-time employees, the credit union holds loans and leases worth $289.6 million. Its 44,444 members currently have $1.33 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, F & An exhibited a superior condition, earning a full 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 evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, F & A scored 20 out of a possible 30 points, better than the national average of 15.26.

F & A had a capitalization ratio of 15.00 percent in our test, better than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having extensive holdings of these types of assets means a credit union could have 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 money, resulting in depressed earnings and potentially more risk of a failure in the future.

F & A scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.15.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, F & A scored 16 out of a possible 30, exceeding the national average of 10.31.

F & A had an earnings ratio of 7.00 percent in our test, better than 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.