Safe and Sound

PALMETTO FIRST

FLORENCE, SC
5
Star Rating
Started in 1953, PALMETTO FIRST is an NCUA-insured credit union based in FLORENCE, SC. Regulatory filings show the credit union having assets of $39.7 million, as of December 31, 2017.

With 13 full-time employees, the credit union holds loans and leases worth $24.1 million. PALMETTO FIRST's 5,992 members currently have $33.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PALMETTO 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 score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

PALMETTO FIRST achieved a score of 20 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

PALMETTO FIRST appears to be on more solid financial footing than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact 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 force a credit union to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a future failure.

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

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, PALMETTO FIRST scored 16 out of a possible 30, beating out the national average of 10.11.

One sign that PALMETTO FIRST is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.