Safe and Sound

FIRST U.S. COMMUNITY

SACRAMENTO, CA
4
Star Rating
Founded in 1936, FIRST U.S. COMMUNITY is an NCUA-insured credit union based in SACRAMENTO, CA. As of June 30, 2017, the credit union held assets of $358.1 million.

Members have $200.5 million on deposit tended by 68 full-time employees. With that footprint, the credit union holds loans and leases worth $200.5 million. Its 24,199 members currently have $318.2 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It works as a buffer against losses and as protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, FIRST U.S. COMMUNITY received a score of 12 out of a possible 30 points, coming in below the national average of 15.26.

FIRST U.S. COMMUNITY's capitalization ratio of 11.00 percent in our test was below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate 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 mortgages.

Having large numbers of these kinds of assets suggests a credit union may have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

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

A below-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 affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, FIRST U.S. COMMUNITY scored 16 out of a possible 30, better than the national average of 10.31.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 8.00 percent in our test, higher 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.