Safe and Sound

FIRST PRIORITY

BOSTON, MA
5
Star Rating
FIRST PRIORITY is a BOSTON, MA-based, NCUA-insured credit union founded in 1924. The credit union holds $105.6 million in assets, according to June 30, 2017, regulatory filings.

With 25 full-time employees, the credit union has amassed loans and leases worth $68.3 million. FIRST PRIORITY's 6,982 members currently have $86.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FIRST PRIORITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is useful. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, FIRST PRIORITY scored 26 out of a possible 30 points, beating out the national average of 15.26.

FIRST PRIORITY had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

FIRST PRIORITY exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 2.00 percent in our test, below the national average and 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, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

FIRST PRIORITY received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One indication that FIRST PRIORITY is doing better than its peers in this area was its earnings ratio of 2.00 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.