Safe and Sound

COMMUNITY FIRST

Ashtabula, OH
4
Star Rating
COMMUNITY FIRST is an Ashtabula, OH-based, NCUA-insured credit union that opened its doors in 1955. As of December 31, 2017, the credit union held assets of $75.8 million.

With 15 full-time employees, the credit union holds loans and leases worth $31.7 million. Its 5,603 members currently have $64.2 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is valuable. It acts as a buffer against losses and affords protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, COMMUNITY FIRST achieved a score of 20 out of a possible 30 points, beating the national average of 15.65.

COMMUNITY FIRST appears to be on more solid financial footing than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine 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 could have to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

COMMUNITY FIRST 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 COMMUNITY FIRST's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

COMMUNITY FIRST underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

COMMUNITY FIRST had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.