Safe and Sound

BANK FUND STAFF

WASHINGTON, DC
4
Star Rating
Founded in 1947, BANK FUND STAFF is an NCUA-insured credit union headquartered in WASHINGTON, DC. The credit union has $4.66 billion in assets, according to June 30, 2017, regulatory filings.

Members have $2.67 billion on deposit tended by 308 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.67 billion. BANK FUND STAFF's 86,406 members currently have $4.08 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BANK FUND STAFF exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial resilience, capital is key. From a safety and soundness perspective, the higher the capital, the better.

BANK FUND STAFF scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 12 out of a possible 30 points.

BANK FUND STAFF appears to be weaker than its peers in this area, with a capitalization ratio of 11.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, reducing its equity buffer. 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 reduced earnings and potentially more risk of a future failure.

BANK FUND STAFF exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

BANK FUND STAFF's ratio of troubled assets was 3.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, BANK FUND STAFF scored 16 out of a possible 30, beating out the national average of 10.31.

One sign that BANK FUND STAFF is outperforming its peers in this area was its earnings ratio of 7.00 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.