Safe and Sound

MEMBERS FIRST OF MARYLAND

Baltimore, MD
2
Star Rating
Started in 1969, MEMBERS FIRST OF MARYLAND is an NCUA-insured credit union headquartered in Baltimore, MD. The credit union holds assets of $27.5 million, according to December 31, 2017, regulatory filings.

Members have $18.7 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $18.7 million. MEMBERS FIRST OF MARYLAND's 3,681 members currently have $24.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS FIRST OF MARYLAND exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, MEMBERS FIRST OF MARYLAND received a score of 10 out of a possible 30 points, less than the national average of 15.65.

MEMBERS FIRST OF MARYLAND's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets may eventually require a credit union to use capital to cover losses, diminishing 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 diminished earnings and potentially more risk of a future failure.

MEMBERS FIRST OF MARYLAND finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of MEMBERS FIRST OF MARYLAND's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, MEMBERS FIRST OF MARYLAND scored 0 out of a possible 30, falling short of the national average of 10.11.

MEMBERS FIRST OF MARYLAND had an earnings ratio of 0.00 percent in our test, higher 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.