Safe and Sound

THE FAMILY

Davenport, IA
5
Star Rating
Davenport, IA-based THE FAMILY is an NCUA-insured credit union started in 1935. Regulatory filings show the credit union having assets of $154.5 million, as of December 31, 2017.

Thanks to the work of 49 full-time employees, the credit union currently holds loans and leases worth $88.4 million. Its 18,314 members currently have $133.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THE FAMILY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for 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?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is key. It acts as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

THE FAMILY exceeded the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 18 out of a possible 30 points.

THE FAMILY had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these types of assets suggests a credit union may eventually have to use capital to absorb losses, diminishing 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, pushing down earnings and elevating the risk of a failure in the future.

THE FAMILY scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

THE FAMILY's ratio of problem assets was 0.00 percent 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 safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, THE FAMILY scored 14 out of a possible 30, exceeding the national average of 10.11.

THE FAMILY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.