Safe and Sound

FIRST CENTURY

Sioux Falls, SD
5
Star Rating
Started in 1935, FIRST CENTURY is an NCUA-insured credit union headquartered in Sioux Falls, SD. As of December 31, 2017, the credit union held assets of $20.4 million.

Members have $11.3 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $11.3 million. Its 1,452 members currently have $18.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST CENTURY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major 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 acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. When looking at safety and soundness, the higher the capital, the better.

FIRST CENTURY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

FIRST CENTURY's capitalization ratio of 14.00 percent in our test was below the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

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

FIRST CENTURY's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

FIRST CENTURY scored 18 out of a possible 30 on Bankrate's earnings test, beating out 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, an indication 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.