Safe and Sound

FORT WORTH CITY

FORT WORTH, TX
5
Star Rating
FORT WORTH, TX-based FORT WORTH CITY is an NCUA-insured credit union started in 1929. As of December 31, 2017, the credit union had assets of $188.6 million.

With 38 full-time employees, the credit union holds loans and leases worth $79.7 million. Its 13,652 members currently have $165.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FORT WORTH CITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

FORT WORTH CITY came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

FORT WORTH CITY's capitalization ratio of 14.00 percent in our test was below the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union may eventually have 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, decreasing earnings and increasing the chances of a failure in the future.

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

FORT WORTH CITY's ratio of troubled assets was 0.00 percent in our test, below 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, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, FORT WORTH CITY scored 16 out of a possible 30, exceeding the national average of 10.11.

One sign that FORT WORTH CITY is running ahead of 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.