Safe and Sound

FIRST PIONEERS

LAFAYETTE, LA
5
Star Rating
FIRST PIONEERS is a LAFAYETTE, LA-based, NCUA-insured credit union that opened its doors in 1949. The credit union holds $38.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $23.0 million on deposit tended by 13 full-time employees. With that footprint, the credit union has amassed loans and leases worth $23.0 million. Its 5,995 members currently have $32.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST PIONEERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial resilience. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the higher the capital, the better.

FIRST PIONEERS exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.

FIRST PIONEERS's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, shrinking its equity buffer. 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, resulting in lower earnings and potentially more risk of a future failure.

FIRST PIONEERS scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less 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, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

FIRST PIONEERS scored 10 out of a possible 30 on Bankrate's earnings test, below 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, suggesting 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.