Safe and Sound

FIRST CHOICE

WEST PALM BEACH, FL
4
Star Rating
FIRST CHOICE is a WEST PALM BEACH, FL-based, NCUA-insured credit union started in 1929. The credit union has assets of $108.7 million, according to June 30, 2017, regulatory filings.

Members have $44.6 million on deposit tended by 31 full-time employees. With that footprint, the credit union holds loans and leases worth $44.6 million. Its 10,677 members currently have $95.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FIRST CHOICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during times of financial trouble for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

FIRST CHOICE received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.26.

FIRST CHOICE had a capitalization ratio of 9.00 percent in our test, lower than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets could eventually be required to use capital to cover losses, diminishing 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, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, FIRST CHOICE scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

The credit union's ratio of troubled assets was 4.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

FIRST CHOICE received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One indication that FIRST CHOICE is outperforming its peers in this area was its earnings ratio of 5.00 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.