Safe and Sound

FIRSTMARK

San Antonio, TX
4
Star Rating
Started in 1932, FIRSTMARK is an NCUA-insured credit union based in San Antonio, TX. The credit union holds $1.05 billion in assets, according to December 31, 2017, regulatory filings.

With 285 full-time employees, the credit union holds loans and leases worth $761.7 million. Its 101,560 members currently have $842.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRSTMARK exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is important. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

FIRSTMARK received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

FIRSTMARK had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, FIRSTMARK scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

FIRSTMARK outperformed the average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

FIRSTMARK had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.