Safe and Sound

1ST UNITED SERVICES

Pleasanton, CA
4
Star Rating
1ST UNITED SERVICES is an NCUA-insured credit union started in 1932 and currently headquartered in Pleasanton, CA. Regulatory filings show the credit union having assets of $1.02 billion, as of December 31, 2017.

With 128 full-time employees, the credit union has amassed loans and leases worth $805.0 million. Its 58,530 members currently have $919.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, 1ST UNITED SERVICES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It acts as a bulwark against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

1ST UNITED SERVICES received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

1ST UNITED SERVICES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually be forced to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, 1ST UNITED SERVICES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of 1ST UNITED SERVICES's total assets in our test, less than the national average and 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 long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, 1ST UNITED SERVICES scored 12 out of a possible 30, above the national average of 10.11.

1ST UNITED SERVICES had an earnings ratio of 0.00 percent in our test, better 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.