Safe and Sound

FERGUS

Lewistown, MT
4
Star Rating
Started in 1953, FERGUS is an NCUA-insured credit union based in Lewistown, MT. The credit union holds assets of $65.9 million, according to December 31, 2017, regulatory filings.

Members have $39.9 million on deposit tended by 18 full-time employees. With that footprint, the credit union currently holds loans and leases worth $39.9 million. FERGUS's 5,680 members currently have $57.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FERGUS 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 key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, FERGUS received a score of 14 out of a possible 30 points, lower than the national average of 15.65.

FERGUS's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually have to use capital to cover losses, decreasing its cushion of equity. 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 lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, FERGUS scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

Troubled assets made up 0.00 percent of FERGUS's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on 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 better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

FERGUS received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One sign that the credit union 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.