Safe and Sound

FINANCIAL ONE

Coon Rapids, MN
5
Star Rating
Coon Rapids, MN-based FINANCIAL ONE is an NCUA-insured credit union started in 1933. As of December 31, 2017, the credit union had assets of $111.9 million.

With 29 full-time employees, the credit union currently holds loans and leases worth $104.1 million. FINANCIAL ONE's 8,971 members currently have $92.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FINANCIAL ONE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is key. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, FINANCIAL ONE received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

FINANCIAL ONE appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than 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 past-due loans.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to cover losses, cutting down on 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 elevating the risk of a future failure.

On Bankrate's asset quality test, FINANCIAL ONE scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

FINANCIAL ONE scored 24 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.11.

One sign that FINANCIAL ONE is outperforming 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.