Safe and Sound

FAMILIES AND SCHOOLS TOGETHER

HANFORD, CA
5
Star Rating
Founded in 1954, FAMILIES AND SCHOOLS TOGETHER is an NCUA-insured credit union based in HANFORD, CA. The credit union holds $153.1 million in assets, according to December 31, 2017, regulatory filings.

Members have $117.9 million on deposit tended by 35 full-time employees. With that footprint, the credit union holds loans and leases worth $117.9 million. FAMILIES AND SCHOOLS TOGETHER's 15,744 members currently have $131.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAMILIES AND SCHOOLS TOGETHER exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key 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

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a key measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

FAMILIES AND SCHOOLS TOGETHER fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

FAMILIES AND SCHOOLS TOGETHER had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to cover losses, decreasing its equity cushion. 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, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, FAMILIES AND SCHOOLS TOGETHER scored 40 out of a possible 40 points, above the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, FAMILIES AND SCHOOLS TOGETHER scored 22 out of a possible 30, exceeding the national average of 10.11.

One indication that the credit union 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.