Safe and Sound

FOCUS FIRST

ROCHESTER, NY
4
Star Rating
FOCUS FIRST is an NCUA-insured credit union started in 1955 and currently based in ROCHESTER, NY. The credit union has $17.0 million in assets, according to December 31, 2017, regulatory filings.

With 3 full-time employees, the credit union has amassed loans and leases worth $9.3 million. Its 1,680 members currently have $10.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FOCUS FIRST exhibited a good condition, earning 4 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is preferred.

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

FOCUS FIRST's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it's stronger 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 problem assets, such as unpaid loans.

Having large numbers of these types of assets may eventually force a credit union to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, FOCUS FIRST scored 0 out of a possible 30, less than the national average of 10.11.

FOCUS FIRST had an earnings ratio of 0.00 percent in our test, better 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.