Safe and Sound

FIRST CAROLINA PEOPLE'S

GOLDSBORO, NC
3
Star Rating
FIRST CAROLINA PEOPLE'S is an NCUA-insured credit union started in 1952 and currently headquartered in GOLDSBORO, NC. The credit union has assets of $29.7 million, according to December 31, 2017, regulatory filings.

Members have $22.7 million on deposit tended by 9 full-time employees. With that footprint, the credit union currently holds loans and leases worth $22.7 million. Its 2,410 members currently have $26.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST CAROLINA PEOPLE'S 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 key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

FIRST CAROLINA PEOPLE'S received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

FIRST CAROLINA PEOPLE'S appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be forced to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

FIRST CAROLINA PEOPLE'S fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 28 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 potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

FIRST CAROLINA PEOPLE'S scored 10 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One sign that FIRST CAROLINA PEOPLE'S is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.