Safe and Sound

1ST CHOICE

ATLANTA, GA
4
Star Rating
1ST CHOICE is an NCUA-insured credit union founded in 1991 and currently headquartered in ATLANTA, GA. Regulatory filings show the credit union having $24.0 million in assets, as of June 30, 2017.

With 9 full-time employees, the credit union has amassed loans and leases worth $12.1 million. Its 8,216 members currently have $20.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 1ST CHOICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. From a safety and soundness perspective, more capital is better.

1ST CHOICE scored 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.26.

1ST CHOICE's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

Having a large number of these types of assets means a credit union may eventually have to use capital to cover losses, shrinking its buffer 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, decreasing earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, 1ST CHOICE scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

Troubled assets made up 6.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to 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.

On Bankrate's earnings test, 1ST CHOICE scored 2 out of a possible 30, coming in below the national average of 10.31.

1ST CHOICE had an earnings ratio of 0.00 percent in our test, below the average for all credit unions, an indication 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.