Safe and Sound

FIRSTENERGY FAMILY

Akron, OH
4
Star Rating
Founded in 1936, FIRSTENERGY FAMILY is an NCUA-insured credit union headquartered in Akron, OH. Regulatory filings show the credit union having $42.7 million in assets, as of December 31, 2017.

Members have $25.9 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $25.9 million. Its 4,655 members currently have $37.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRSTENERGY FAMILY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is important. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, FIRSTENERGY FAMILY scored 18 out of a possible 30 points, exceeding the national average of 15.65.

FIRSTENERGY FAMILY's capitalization ratio of 18.00 percent in our test was better than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand 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 past-due loans.

A credit union with a large number of these types of assets could eventually have to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, FIRSTENERGY FAMILY scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

FIRSTENERGY FAMILY scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

FIRSTENERGY FAMILY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.