Safe and Sound

TOWN AND COUNTRY

MINOT, ND
5
Star Rating
MINOT, ND-based TOWN AND COUNTRY is an NCUA-insured credit union started in 1939. As of December 31, 2017, the credit union had assets of $413.7 million.

Members have $329.5 million on deposit tended by 129 full-time employees. With that footprint, the credit union currently holds loans and leases worth $329.5 million. TOWN AND COUNTRY's 18,788 members currently have $351.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOWN AND COUNTRY exhibited a superior condition, earning a full 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 U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is important. It acts as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

TOWN AND COUNTRY racked up 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

TOWN AND COUNTRY had a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

TOWN AND COUNTRY scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

TOWN AND COUNTRY's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

TOWN AND COUNTRY scored 12 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.