Safe and Sound

FIRST MISSOURI

Saint Louis, MO
4
Star Rating
FIRST MISSOURI is an NCUA-insured credit union founded in 1927 and currently based in Saint Louis, MO. The credit union holds assets of $64.8 million, according to June 30, 2017, regulatory filings.

With 23 full-time employees, the credit union currently holds loans and leases worth $51.6 million. FIRST MISSOURI's 8,468 members currently have $56.7 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is valuable. When looking at safety and soundness, more capital is preferred.

FIRST MISSOURI received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.26.

FIRST MISSOURI had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets suggests a credit union could have to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

FIRST MISSOURI fell below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A higher-than-average ratio of problem assets of 8.00 percent in our test was a potential area of concern for FIRST MISSOURI.

Earnings score

How successful a credit union is at making money 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, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, FIRST MISSOURI scored 12 out of a possible 30, beating the national average of 10.31.

The credit union had an earnings ratio of 6.00 percent in our test, better 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.