Safe and Sound

1ST ADVANTAGE

Newport News, VA
4
Star Rating
1ST ADVANTAGE is an NCUA-insured credit union started in 1951 and currently headquartered in Newport News, VA. Regulatory filings show the credit union having $664.8 million in assets, as of June 30, 2017.

Thanks to the work of 213 full-time employees, the credit union has amassed loans and leases worth $547.2 million. 1ST ADVANTAGE's 59,467 members currently have $570.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 1ST ADVANTAGE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is crucial. When looking at safety and soundness, more capital is better.

1ST ADVANTAGE received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.26.

1ST ADVANTAGE's capitalization ratio of 11.00 percent in our test was less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

A credit union with a large number of these kinds of assets may eventually have to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, 1ST ADVANTAGE scored 36 out of a possible 40 points, lower than the national average of 38.15 points.

A greater-than-average ratio of problem assets of 11.00 percent in our test was something to watch for the credit union.

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, increasing its capital cushion, or put them to work addressing problematic loans, likely 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, 1ST ADVANTAGE scored 6 out of a possible 30, less than the national average of 10.31.

The credit union had an earnings ratio of 3.00 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.