Safe and Sound

FIRST HERITAGE

Painted Post, NY
4
Star Rating
FIRST HERITAGE is an NCUA-insured credit union started in 1954 and currently headquartered in Painted Post, NY. The credit union holds $450.6 million in assets, according to December 31, 2017, regulatory filings.

With 101 full-time employees, the credit union has amassed loans and leases worth $287.9 million. Its 37,132 members currently have $396.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST HERITAGE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is key. It works as a bulwark against losses and provides protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

FIRST HERITAGE scored below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

FIRST HERITAGE's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

FIRST HERITAGE beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that FIRST HERITAGE 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.