Safe and Sound

FAMILY 1ST

New Castle, PA
3
Star Rating
FAMILY 1ST is an NCUA-insured credit union founded in 1951 and currently based in New Castle, PA. The credit union has $12.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $8.6 million on deposit tended by 5 full-time employees. With that footprint, the credit union currently holds loans and leases worth $8.6 million. FAMILY 1ST's 1,950 members currently have $10.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAMILY 1ST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is important. It acts as a cushion against losses and provides protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, FAMILY 1ST achieved a score of 16 out of a possible 30 points, beating the national average of 15.65.

FAMILY 1ST's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets means a credit union may eventually have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

FAMILY 1ST scored 32 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

FAMILY 1ST's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

FAMILY 1ST scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than 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.