Safe and Sound

FASSON EMPLOYEES

Painesville, OH
5
Star Rating
FASSON EMPLOYEES is an NCUA-insured credit union started in 1959 and currently based in Painesville, OH. The credit union has assets of $12.6 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $2.9 million. Its 1,438 members currently have $10.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FASSON EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

FASSON EMPLOYEES beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 28 out of a possible 30 points.

FASSON EMPLOYEES's capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, FASSON EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

FASSON EMPLOYEES's ratio of problem 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 earning money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, FASSON EMPLOYEES scored 8 out of a possible 30, below the national average of 10.11.

One sign that FASSON EMPLOYEES is beating 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.