Safe and Sound

FAMILIES FIRST

CASPER, WY
4
Star Rating
CASPER, WY-based FAMILIES FIRST is an NCUA-insured credit union started in 1962. The credit union has $5.3 million in assets, according to December 31, 2017, regulatory filings.

Members have $4.5 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.5 million. FAMILIES FIRST's 800 members currently have $4.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAMILIES FIRST 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 score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of financial instability for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

FAMILIES FIRST did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 22 out of a possible 30 points.

FAMILIES FIRST appears to be stronger than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a future failure.

FAMILIES FIRST exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

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 earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

FAMILIES FIRST scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.