Safe and Sound

FIRST COMMUNITY

Jamestown, ND
5
Star Rating
Founded in 1939, FIRST COMMUNITY is an NCUA-insured credit union headquartered in Jamestown, ND. As of December 31, 2017, the credit union had assets of $619.0 million.

Thanks to the efforts of 165 full-time employees, the credit union holds loans and leases worth $527.7 million. Its 32,517 members currently have $486.8 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial strength. It works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, FIRST COMMUNITY achieved a score of 18 out of a possible 30 points, exceeding the national average of 15.65.

FIRST COMMUNITY appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of FIRST COMMUNITY's total assets in our test, less than 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 safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

FIRST COMMUNITY received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

FIRST COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.