Safe and Sound

FIRST IMPERIAL

EL CENTRO, CA
4
Star Rating
FIRST IMPERIAL is an EL CENTRO, CA-based, NCUA-insured credit union that opened its doors in 1942. Regulatory filings show the credit union having $104.2 million in assets, as of June 30, 2017.

With 22 full-time employees, the credit union holds loans and leases worth $74.4 million. FIRST IMPERIAL's 16,133 members currently have $91.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FIRST IMPERIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure capital adequacy, FIRST IMPERIAL received a score of 10 out of a possible 30 points, failing to reach the national average of 15.26.

FIRST IMPERIAL 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, less than the average for all credit unions.

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 problem assets, such as unpaid mortgages.

Having a large number of these types of assets could eventually require a credit union to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, FIRST IMPERIAL scored 36 out of a possible 40 points, coming in below the national average of 38.15 points.

A higher-than-average ratio of problem assets of 8.00 percent in our test was something to watch for FIRST IMPERIAL.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

FIRST IMPERIAL scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

The credit union had an earnings ratio of 5.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.