Safe and Sound

AMERICA FIRST

Riverdale, UT
4
Star Rating
Started in 1939, AMERICA FIRST is an NCUA-insured credit union headquartered in Riverdale, UT. The credit union has assets of $8.94 billion, according to June 30, 2017, regulatory filings.

Members have $6.39 billion on deposit tended by 2,562 full-time employees. With that footprint, the credit union currently holds loans and leases worth $6.39 billion. Its 861,285 members currently have $7.87 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AMERICA FIRST 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, AMERICA FIRST received a score of 10 out of a possible 30 points, coming in below the national average of 15.26.

AMERICA FIRST appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets suggests a credit union could have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, AMERICA FIRST scored 36 out of a possible 40 points, less than the national average of 38.15 points.

The credit union's ratio of problem assets was 9.00 percent in our test, greater than the national average and a potential area of concern.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

AMERICA FIRST beat the national average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 11.00 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.