Safe and Sound

FAMILIES AND SCHOOLS TOGETHER

HANFORD, CA
5
Star Rating
HANFORD, CA-based FAMILIES AND SCHOOLS TOGETHER is an NCUA-insured credit union started in 1954. As of June 30, 2017, the credit union had assets of $153.0 million.

Members have $118.3 million on deposit tended by 38 full-time employees. With that footprint, the credit union currently holds loans and leases worth $118.3 million. FAMILIES AND SCHOOLS TOGETHER's 15,426 members currently have $134.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FAMILIES AND SCHOOLS TOGETHER exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to score American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of financial trouble for the credit union. It follows then that a credit union's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

FAMILIES AND SCHOOLS TOGETHER received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.26.

FAMILIES AND SCHOOLS TOGETHER had a capitalization ratio of 11.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets may eventually force a credit union to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, FAMILIES AND SCHOOLS TOGETHER scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

Troubled assets made up 5.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

FAMILIES AND SCHOOLS TOGETHER scored 24 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.31.

The credit union had an earnings ratio of 14.00 percent in our test, above the average for all credit unions, suggesting 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.