Safe and Sound

FIRST FINANCIAL OF MARYLAND

LUTHERVILLE, MD
5
Star Rating
FIRST FINANCIAL OF MARYLAND is a LUTHERVILLE, MD-based, NCUA-insured credit union founded in 1953. As of December 31, 2017, the credit union held assets of $1.00 billion.

With 143 full-time employees, the credit union holds loans and leases worth $395.5 million. FIRST FINANCIAL OF MARYLAND's 63,541 members currently have $794.2 million in shares with the credit union.

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

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is important. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

FIRST FINANCIAL OF MARYLAND did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

FIRST FINANCIAL OF MARYLAND appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually force a credit union to use capital to absorb losses, decreasing 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, reducing earnings and increasing the risk of a failure in the future.

FIRST FINANCIAL OF MARYLAND exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative 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. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, FIRST FINANCIAL OF MARYLAND scored 2 out of a possible 30, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's beating 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.