Safe and Sound

121 FINANCIAL

Jacksonville, FL
3
Star Rating
Started in 1935, 121 FINANCIAL is an NCUA-insured credit union headquartered in Jacksonville, FL. The credit union has $552.9 million in assets, according to June 30, 2017, regulatory filings.

Members have $437.1 million on deposit tended by 139 full-time employees. With that footprint, the credit union holds loans and leases worth $437.1 million. 121 FINANCIAL's 49,389 members currently have $463.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 121 FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is valuable. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, 121 FINANCIAL received a score of 10 out of a possible 30 points, less than the national average of 15.26.

121 FINANCIAL appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, decreasing its equity buffer. 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 increasing the risk of a failure in the future.

121 FINANCIAL scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

121 FINANCIAL's ratio of problem assets was 7.00 percent in our test, the same as the national average.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

121 FINANCIAL scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.31.

121 FINANCIAL had an earnings ratio of -2.00 percent in our test, worse than the average for all credit unions, suggesting that it's running behind 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.