Safe and Sound

FIRST CHOICE COMMUNITY

Niles, OH
4
Star Rating
FIRST CHOICE COMMUNITY is a Niles, OH-based, NCUA-insured credit union dating back to 1968. The credit union holds $28.0 million in assets, according to June 30, 2017, regulatory filings.

With 6 full-time employees, the credit union holds loans and leases worth $6.0 million. Its 3,233 members currently have $24.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FIRST CHOICE 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 major criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial fortitude, capital is crucial. When looking at safety and soundness, the more capital, the better.

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

FIRST CHOICE COMMUNITY's capitalization ratio of 13.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets means a credit union could have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

FIRST CHOICE COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.

The credit union's ratio of troubled assets was 8.00 percent in our test, above the national average and something to keep an eye on.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, FIRST CHOICE COMMUNITY scored 4 out of a possible 30, below the national average of 10.31.

FIRST CHOICE COMMUNITY had an earnings ratio of 2.00 percent in our test, better than the average for all credit unions, a sign that it's doing better than 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.