Safe and Sound

FARGO PUBLIC SCHOOLS

FARGO, ND
4
Star Rating
FARGO, ND-based FARGO PUBLIC SCHOOLS is an NCUA-insured credit union started in 1934. As of December 31, 2017, the credit union held assets of $38.6 million.

Members have $17.1 million on deposit tended by 9 full-time employees. With that footprint, the credit union currently holds loans and leases worth $17.1 million. Its 2,572 members currently have $33.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FARGO PUBLIC SCHOOLS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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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 experiencing financial instability. It follows then that an institution's level of capital is an essential measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

FARGO PUBLIC SCHOOLS achieved a score of 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

FARGO PUBLIC SCHOOLS had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may have to use capital to cover losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

FARGO PUBLIC SCHOOLS scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent 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, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, FARGO PUBLIC SCHOOLS scored 8 out of a possible 30, lower than the national average of 10.11.

One sign that the credit union 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.