Safe and Sound

FIRST GENERAL

Norton Shores, MI
3
Star Rating
Norton Shores, MI-based FIRST GENERAL is an NCUA-insured credit union started in 1953. As of December 31, 2017, the credit union held assets of $57.1 million.

Members have $28.0 million on deposit tended by 23 full-time employees. With that footprint, the credit union holds loans and leases worth $28.0 million. Its 7,818 members currently have $47.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST GENERAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

FIRST GENERAL racked up 22 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

FIRST GENERAL appears to be on more solid financial footing than its peers, with a capitalization ratio of 22.00 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 capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having lots of these kinds of assets may eventually require a credit union to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

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

FIRST GENERAL's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address 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.

FIRST GENERAL fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

FIRST GENERAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.