Safe and Sound

FARM BUREAU FAMILY

LANSING, MI
4
Star Rating
LANSING, MI-based FARM BUREAU FAMILY is an NCUA-insured credit union founded in 1934. The credit union has assets of $18.4 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 3 full-time employees, the credit union has amassed loans and leases worth $7.8 million. FARM BUREAU FAMILY's 1,685 members currently have $16.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FARM BUREAU FAMILY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is an essential measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

FARM BUREAU FAMILY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

FARM BUREAU FAMILY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb 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 money, resulting in reduced earnings and potentially more risk of a future failure.

FARM BUREAU FAMILY scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

FARM BUREAU FAMILY scored 8 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

FARM BUREAU FAMILY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.