Safe and Sound

FAMILY SECURITY

Decatur, AL
5
Star Rating
Founded in 1953, FAMILY SECURITY is an NCUA-insured credit union based in Decatur, AL. As of December 31, 2017, the credit union had assets of $623.1 million.

Thanks to the efforts of 171 full-time employees, the credit union holds loans and leases worth $400.6 million. Its 80,967 members currently have $529.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAMILY SECURITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade American 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 during times of financial trouble for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

FAMILY SECURITY did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.

FAMILY SECURITY appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

FAMILY SECURITY scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

One indication that FAMILY SECURITY is running ahead of 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.