Safe and Sound

MEMBERS 1ST

Redding, CA
4
Star Rating
REDDING, CA-based MEMBERS 1ST is an NCUA-insured credit union founded in 1936. Regulatory filings show the credit union having $191.8 million in assets, as of December 31, 2017.

Thanks to the work of 51 full-time employees, the credit union holds loans and leases worth $148.0 million. MEMBERS 1ST's 19,418 members currently have $162.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS 1ST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a key measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, MEMBERS 1ST received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

MEMBERS 1ST appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking 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 depressed earnings and potentially more risk of a future failure.

MEMBERS 1ST exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

MEMBERS 1ST beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

MEMBERS 1ST had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.