Safe and Sound

FIRST COMMUNITY

Coquille, OR
4
Star Rating
FIRST COMMUNITY is a Coquille, OR-based, NCUA-insured credit union dating back to 1957. Regulatory filings show the credit union having assets of $1.04 billion, as of December 31, 2017.

With 283 full-time employees, the credit union has amassed loans and leases worth $707.9 million. FIRST COMMUNITY's 76,450 members currently have $934.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST COMMUNITY 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 key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, FIRST COMMUNITY received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

FIRST COMMUNITY had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

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

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative 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 may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

FIRST COMMUNITY outperformed the average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One indication that FIRST COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.