Safe and Sound

COMMUNITY FIRST GUAM

Hagatna, GU
4
Star Rating
COMMUNITY FIRST GUAM is a Hagatna, GU-based, NCUA-insured credit union dating back to 1962. Regulatory filings show the credit union having $118.4 million in assets, as of December 31, 2017.

Members have $93.4 million on deposit tended by 74 full-time employees. With that footprint, the credit union currently holds loans and leases worth $93.4 million. Its 11,207 members currently have $104.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY FIRST GUAM exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, COMMUNITY FIRST GUAM received a score of 10 out of a possible 30 points, less than the national average of 15.65.

COMMUNITY FIRST GUAM's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these kinds of assets means a credit union may have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

COMMUNITY FIRST GUAM scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. 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 more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

COMMUNITY FIRST GUAM received above-average marks on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

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