Safe and Sound

FIRST TECHNOLOGY

Mountain View, CA
4
Star Rating
FIRST TECHNOLOGY is a Mountain View, CA-based, NCUA-insured credit union that opened its doors in 1970. The credit union holds $10.56 billion in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 1,401 full-time employees, the credit union holds loans and leases worth $7.61 billion. FIRST TECHNOLOGY's 488,067 members currently have $7.30 billion in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial resilience, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

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

FIRST TECHNOLOGY 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

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets may eventually force a credit union to use capital to cover losses, shrinking 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, reducing earnings and elevating the chances of a future failure.

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

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

FIRST TECHNOLOGY exceeded the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 9.00 percent in our test, higher than the average for all credit unions, suggesting 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.