Safe and Sound

CITIZENS COMMUNITY

Fort Dodge, IA
5
Star Rating
CITIZENS COMMUNITY is an NCUA-insured credit union founded in 1940 and currently headquartered in Fort Dodge, IA. Regulatory filings show the credit union having $191.5 million in assets, as of December 31, 2017.

Thanks to the work of 51 full-time employees, the credit union holds loans and leases worth $149.7 million. CITIZENS COMMUNITY's 15,405 members currently have $159.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CITIZENS COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is important. It works as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, more capital is preferred.

CITIZENS COMMUNITY did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 22 out of a possible 30 points.

CITIZENS COMMUNITY had a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions, a sign that it's more well prepared for financial trouble 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 mortgages.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, CITIZENS COMMUNITY scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of CITIZENS COMMUNITY's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, CITIZENS COMMUNITY scored 12 out of a possible 30, exceeding the national average of 10.11.

One sign that CITIZENS COMMUNITY is doing better than 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.