Safe and Sound

FIRST COMMUNITY CU OF BELOIT

BELOIT, WI
5
Star Rating
BELOIT, WI-based FIRST COMMUNITY CU OF BELOIT is an NCUA-insured credit union started in 1933. Regulatory filings show the credit union having assets of $133.6 million, as of June 30, 2017.

With 45 full-time employees, the credit union has amassed loans and leases worth $122.5 million. FIRST COMMUNITY CU OF BELOIT's 18,896 members currently have $113.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FIRST COMMUNITY CU OF BELOIT exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It acts as a buffer against losses and affords protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, more capital is better.

FIRST COMMUNITY CU OF BELOIT beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, achieving a score of 18 out of a possible 30 points.

FIRST COMMUNITY CU OF BELOIT had a capitalization ratio of 13.00 percent in our test, the same as the average for all credit unions, suggesting that it's right in line with 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 unpaid mortgages.

A credit union with large numbers of these types of assets could eventually have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

FIRST COMMUNITY CU OF BELOIT did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

FIRST COMMUNITY CU OF BELOIT's ratio of troubled assets was 3.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, FIRST COMMUNITY CU OF BELOIT scored 18 out of a possible 30, exceeding the national average of 10.31.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 8.00 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.