Safe and Sound

FAIRFIELD

PINE BLUFF, AR
5
Star Rating
FAIRFIELD is an NCUA-insured credit union founded in 1958 and currently based in PINE BLUFF, AR. The credit union holds $85.3 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 26 full-time employees, the credit union has amassed loans and leases worth $42.0 million. Its 10,871 members currently have $67.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAIRFIELD exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major 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 bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

FAIRFIELD exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 30 out of a possible 30 points.

FAIRFIELD's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having large numbers of these types of assets could eventually require a credit union to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

FAIRFIELD exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, less than 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 has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, FAIRFIELD scored 6 out of a possible 30, falling short of the national average of 10.11.

FAIRFIELD had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.