Safe and Sound

FIRST COMMUNITY

Coquille, OR
4
Star Rating
Founded in 1957, FIRST COMMUNITY is an NCUA-insured credit union headquartered in Coquille, OR. As of June 30, 2017, the credit union had assets of $1.03 billion.

With 270 full-time employees, the credit union holds loans and leases worth $635.3 million. FIRST COMMUNITY's 75,635 members currently have $920.9 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, FIRST COMMUNITY received a score of 8 out of a possible 30 points, less than the national average of 15.26.

FIRST COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 9.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, cutting down on its buffer of equity. 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, reducing earnings and increasing the risk of a future failure.

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

A below-average ratio of troubled assets of 2.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

FIRST COMMUNITY scored 14 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.31.

FIRST COMMUNITY had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, an indication that it's running ahead of 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.