Safe and Sound

FIRST COAST

JACKSONVILLE, FL
5
Star Rating
JACKSONVILLE, FL-based FIRST COAST is an NCUA-insured credit union started in 1935. Regulatory filings show the credit union having $8.6 million in assets, as of December 31, 2017.

With 3 full-time employees, the credit union has amassed loans and leases worth $5.2 million. Its 1,714 members currently have $7.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST COAST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

FIRST COAST did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 20 out of a possible 30 points.

FIRST COAST had a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis 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 capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on 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 more resilient in tough times. However, credit unions that are losing money are less able to do those things.

FIRST COAST scored 12 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

FIRST COAST had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's doing better than 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.