Safe and Sound

FAMILY FIRST

SAGINAW, MI
3
Star Rating
FAMILY FIRST is a SAGINAW, MI-based, NCUA-insured credit union that opened its doors in 1939. Regulatory filings show the credit union having assets of $81.1 million, as of December 31, 2017.

Members have $50.2 million on deposit tended by 27 full-time employees. With that footprint, the credit union has amassed loans and leases worth $50.2 million. FAMILY FIRST's 6,924 members currently have $69.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAMILY 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 did on the three key 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 strength, capital is crucial. It works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, FAMILY FIRST received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

FAMILY FIRST had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

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

The credit union's ratio of problem assets was 0.00 percent in our test, lower than 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 safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, FAMILY FIRST scored 0 out of a possible 30, lower than the national average of 10.11.

One indication that FAMILY FIRST is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.