Safe and Sound

1ST GATEWAY

CAMANCHE, IA
4
Star Rating
1ST GATEWAY is an NCUA-insured credit union started in 1953 and currently headquartered in CAMANCHE, IA. The credit union has assets of $137.6 million, according to December 31, 2017, regulatory filings.

Members have $112.6 million on deposit tended by 42 full-time employees. With that footprint, the credit union currently holds loans and leases worth $112.6 million. 1ST GATEWAY's 10,200 members currently have $109.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, 1ST GATEWAY 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 important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, 1ST GATEWAY received a score of 14 out of a possible 30 points, falling short of the national average of 15.65.

1ST GATEWAY had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

1ST GATEWAY finished below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was 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. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

1ST GATEWAY received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One sign that 1ST GATEWAY is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.