Safe and Sound

1ST COMMUNITY

SAN ANGELO, TX
3
Star Rating
1ST COMMUNITY is an NCUA-insured credit union founded in 1953 and currently based in SAN ANGELO, TX. As of December 31, 2017, the credit union held assets of $246.2 million.

With 88 full-time employees, the credit union holds loans and leases worth $177.5 million. 1ST COMMUNITY's 21,120 members currently have $220.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, 1ST COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade 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 provides protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, 1ST COMMUNITY received a score of 10 out of a possible 30 points, less than the national average of 15.65.

1ST COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

Having a large number of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a failure in the future.

1ST COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

Troubled assets made up 0.00 percent of 1ST COMMUNITY's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making 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, potentially making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

1ST COMMUNITY received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

1ST COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.