Safe and Sound

FIRST CLASS AMERICAN

FORT WORTH, TX
4
Star Rating
FIRST CLASS AMERICAN is an NCUA-insured credit union founded in 1929 and currently based in FORT WORTH, TX. The credit union has assets of $54.8 million, according to December 31, 2017, regulatory filings.

Members have $44.5 million on deposit tended by 19 full-time employees. With that footprint, the credit union holds loans and leases worth $44.5 million. Its 5,473 members currently have $46.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST CLASS AMERICAN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It works as a buffer against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, FIRST CLASS AMERICAN received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

FIRST CLASS AMERICAN's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem 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 could eventually require a credit union to use capital to cover losses, shrinking its buffer of equity. 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 depressed earnings and potentially more risk of a failure in the future.

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

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, FIRST CLASS AMERICAN scored 8 out of a possible 30, falling short of the national average of 10.11.

One indication that the credit union is outperforming 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.