Safe and Sound

1ST CLASS EXPRESS

WAUKESHA, WI
5
Star Rating
Founded in 1932, 1ST CLASS EXPRESS is an NCUA-insured credit union based in WAUKESHA, WI. Regulatory filings show the credit union having $2.4 million in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $1.8 million. 1ST CLASS EXPRESS's 638 members currently have $2.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, 1ST CLASS EXPRESS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial strength. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

1ST CLASS EXPRESS racked up 24 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

1ST CLASS EXPRESS's capitalization ratio of 24.00 percent in our test was above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having lots of these types of assets means a credit union may have to use capital to cover losses, cutting down on its cushion of equity. 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 increasing the risk of a future failure.

1ST CLASS EXPRESS scored 28 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 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 long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

1ST CLASS EXPRESS scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.