Safe and Sound

FD COMMUNITY

Waterbury, CT
4
Star Rating
WATERBURY, CT-based FD COMMUNITY is an NCUA-insured credit union started in 1934. Regulatory filings show the credit union having assets of $78.8 million, as of December 31, 2017.

With 17 full-time employees, the credit union has amassed loans and leases worth $55.3 million. FD COMMUNITY's 8,629 members currently have $70.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FD COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

FD COMMUNITY fell below the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

FD COMMUNITY had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets may eventually be forced to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

FD COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below 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

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

FD COMMUNITY scored 14 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that FD COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.