Safe and Sound

FIRST LEGACY COMMUNITY

CHARLOTTE, NC
1
Star Rating
Founded in 1941, FIRST LEGACY COMMUNITY is an NCUA-insured credit union headquartered in CHARLOTTE, NC. As of December 31, 2017, the credit union held assets of $32.3 million.

Thanks to the work of 13 full-time employees, the credit union holds loans and leases worth $17.1 million. FIRST LEGACY COMMUNITY's 8,428 members currently have $20.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST LEGACY COMMUNITY exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

FIRST LEGACY COMMUNITY racked up 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

FIRST LEGACY COMMUNITY's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

FIRST LEGACY COMMUNITY came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 28 out of a possible 40 points .

FIRST LEGACY COMMUNITY's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

FIRST LEGACY COMMUNITY received below-average marks on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that FIRST LEGACY COMMUNITY 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.