Safe and Sound

MEMBERS FIRST

Corpus Christi, TX
5
Star Rating
MEMBERS FIRST is an NCUA-insured credit union started in 1938 and currently headquartered in Corpus Christi, TX. As of December 31, 2017, the credit union had assets of $129.2 million.

With 42 full-time employees, the credit union holds loans and leases worth $58.4 million. Its 11,830 members currently have $103.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS FIRST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is important. From a safety and soundness perspective, more capital is better.

MEMBERS FIRST scored 28 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

MEMBERS FIRST's capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, shrinking its equity cushion. 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, decreasing earnings and elevating the risk of a failure in the future.

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

MEMBERS FIRST's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can 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 more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, MEMBERS FIRST scored 12 out of a possible 30, beating the national average of 10.11.

MEMBERS FIRST had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign 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.