Safe and Sound

COMMUNITY FIRST

SANTA ROSA, CA
4
Star Rating
SANTA ROSA, CA-based COMMUNITY FIRST is an NCUA-insured credit union started in 1961. Regulatory filings show the credit union having assets of $211.6 million, as of June 30, 2017.

With 58 full-time employees, the credit union has amassed loans and leases worth $150.6 million. Its 20,156 members currently have $188.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COMMUNITY 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 score U.S. 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 affords protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is a key measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

COMMUNITY FIRST came in below 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.

COMMUNITY FIRST's capitalization ratio of 9.00 percent in our test was lower than the average for all credit unions, a sign that it's weaker 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 mortgages.

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, COMMUNITY FIRST scored 40 out of a possible 40 points, above the national average of 38.15 points.

COMMUNITY FIRST's ratio of problem assets was 4.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

COMMUNITY FIRST received above-average marks on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 7.00 percent in our test, better than 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.