Safe and Sound

FORT MORGAN SCHOOLS

Fort Morgan, CO
5
Star Rating
FORT MORGAN SCHOOLS is a Fort Morgan, CO-based, NCUA-insured credit union founded in 1955. The credit union has assets of $4.1 million, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $2.8 million. Its 570 members currently have $3.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FORT MORGAN SCHOOLS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major 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

Capital works as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

FORT MORGAN SCHOOLS racked up 28 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

FORT MORGAN SCHOOLS appears to be stronger than its peers, with a capitalization ratio of 28.00 percent in our test, above the average for all credit unions.

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 past-due mortgages.

Having large numbers of these kinds of assets means a credit union may have to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a future failure.

FORT MORGAN SCHOOLS did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive 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. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

FORT MORGAN SCHOOLS scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

FORT MORGAN SCHOOLS had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's doing better than 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.