Safe and Sound

1ST COMMUNITY

SAN ANGELO, TX
4
Star Rating
1ST COMMUNITY is a SAN ANGELO, TX-based, NCUA-insured credit union that opened its doors in 1953. As of June 30, 2017, the credit union held assets of $246.3 million.

Members have $172.0 million on deposit tended by 86 full-time employees. With that footprint, the credit union holds loans and leases worth $172.0 million. Its 21,386 members currently have $221.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 1ST COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is useful. It acts as a bulwark against losses and affords protection for members during times of financial instability for the credit union. When looking at safety and soundness, the more capital, the better.

1ST COMMUNITY fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 10 out of a possible 30 points.

1ST COMMUNITY appears to be weaker than its peers in this area, with a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a failure in the future.

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

A greater-than-average ratio of problem assets of 8.00 percent in our test was something to watch for 1ST COMMUNITY.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

1ST COMMUNITY exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

The credit union had an earnings ratio of 5.00 percent in our test, better 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.