Safe and Sound

FIRST IMPERIAL

EL CENTRO, CA
4
Star Rating
FIRST IMPERIAL is an NCUA-insured credit union started in 1942 and currently based in EL CENTRO, CA. Regulatory filings show the credit union having $109.0 million in assets, as of December 31, 2017.

Thanks to the work of 22 full-time employees, the credit union currently holds loans and leases worth $82.0 million. FIRST IMPERIAL's 16,856 members currently have $94.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST IMPERIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is essential. It acts as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

FIRST IMPERIAL received a score of 10 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

FIRST IMPERIAL's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually require 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 thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

FIRST IMPERIAL came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

FIRST IMPERIAL scored 18 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One sign that the credit union is doing better than 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.