Safe and Sound

COMMUNITY FIRST

HANNIBAL, MO
3
Star Rating
COMMUNITY FIRST is an NCUA-insured credit union started in 1952 and currently headquartered in HANNIBAL, MO. As of December 31, 2017, the credit union held assets of $6.4 million.

With 2 full-time employees, the credit union holds loans and leases worth $5.3 million. Its 1,059 members currently have $5.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY FIRST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired 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 a credit union's financial stability, capital is valuable. It acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. 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 received a score of 12 out of a possible 30 points, below the national average of 15.65.

COMMUNITY FIRST had a capitalization ratio of 12.00 percent in our test, 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

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

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a future failure.

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

A below-average ratio of problem assets of 0.00 percent in our test was 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 safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

COMMUNITY FIRST received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

COMMUNITY FIRST had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.