Safe and Sound

FARMERS BRANCH CITY EMPLOYEES

FARMERS BRANCH, TX
5
Star Rating
FARMERS BRANCH CITY EMPLOYEES is a FARMERS BRANCH, TX-based, NCUA-insured credit union started in 1970. Regulatory filings show the credit union having assets of $4.7 million, as of December 31, 2017.

The credit union has amassed loans and leases worth $2.2 million. FARMERS BRANCH CITY EMPLOYEES's 911 members currently have $3.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FARMERS BRANCH CITY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It acts as a cushion against losses and as protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

FARMERS BRANCH CITY EMPLOYEES achieved a score of 30 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.

FARMERS BRANCH CITY EMPLOYEES had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, decreasing its cushion 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 failure in the future.

On Bankrate's asset quality test, FARMERS BRANCH CITY EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of FARMERS BRANCH CITY EMPLOYEES's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

FARMERS BRANCH CITY EMPLOYEES underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.