Safe and Sound

AGASSIZ

CROOKSTON, MN
3
Star Rating
Started in 1953, AGASSIZ is an NCUA-insured credit union headquartered in CROOKSTON, MN. The credit union holds assets of $14.3 million, according to December 31, 2017, regulatory filings.

Members have $7.0 million on deposit tended by 6 full-time employees. With that footprint, the credit union holds loans and leases worth $7.0 million. Its 1,383 members currently have $13.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AGASSIZ exhibited a generally satisfactory condition, earning 3 out of 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.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, AGASSIZ received a score of 6 out of a possible 30 points, below the national average of 15.65.

AGASSIZ's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

Having a large number of these kinds of assets means a credit union could have to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a failure in the future.

AGASSIZ scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

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

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

AGASSIZ received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One indication that AGASSIZ is outperforming 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.