Safe and Sound

1ST UNITED SERVICES

Pleasanton, CA
4
Star Rating
Started in 1932, 1ST UNITED SERVICES is an NCUA-insured credit union based in Pleasanton, CA. The credit union has $995.8 million in assets, according to June 30, 2017, regulatory filings.

With 123 full-time employees, the credit union holds loans and leases worth $750.5 million. 1ST UNITED SERVICES's 55,739 members currently have $896.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 1ST UNITED SERVICES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

1ST UNITED SERVICES received a score of 10 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

1ST UNITED SERVICES's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

1ST UNITED SERVICES exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, 1ST UNITED SERVICES scored 10 out of a possible 30, less than the national average of 10.31.

One sign that 1ST UNITED SERVICES is doing better than its peers in this area was its earnings ratio of 4.00 percent in our test, above the average for all credit unions.

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.