Safe and Sound

FIRST COMMUNITY CU OF BELOIT

BELOIT, WI
5
Star Rating
FIRST COMMUNITY CU OF BELOIT is a BELOIT, WI-based, NCUA-insured credit union founded in 1933. The credit union has assets of $141.8 million, according to December 31, 2017, regulatory filings.

Members have $124.5 million on deposit tended by 45 full-time employees. With that footprint, the credit union currently holds loans and leases worth $124.5 million. FIRST COMMUNITY CU OF BELOIT's 18,434 members currently have $111.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST COMMUNITY CU OF BELOIT exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is valuable. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, FIRST COMMUNITY CU OF BELOIT racked up 18 out of a possible 30 points, above the national average of 15.65.

FIRST COMMUNITY CU OF BELOIT's capitalization ratio of 18.00 percent in our test was better than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, 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 types of assets could eventually be forced to use capital to cover losses, reducing its cushion 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, pushing down earnings and elevating the chances of a future failure.

FIRST COMMUNITY CU OF BELOIT scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

FIRST COMMUNITY CU OF BELOIT's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

FIRST COMMUNITY CU OF BELOIT outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.