Safe and Sound

FORT BRAGG

Fayetteville, NC
5
Star Rating
FORT BRAGG is an NCUA-insured credit union started in 1960 and currently based in Fayetteville, NC. Regulatory filings show the credit union having assets of $399.1 million, as of December 31, 2017.

With 90 full-time employees, the credit union currently holds loans and leases worth $191.2 million. FORT BRAGG's 39,533 members currently have $350.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FORT BRAGG exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It acts as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, FORT BRAGG received a score of 14 out of a possible 30 points, failing to reach the national average of 15.65.

FORT BRAGG appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having large numbers of these types of assets means a credit union may eventually have to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

FORT BRAGG exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, FORT BRAGG scored 16 out of a possible 30, better than the national average of 10.11.

One indication that FORT BRAGG 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.