Safe and Sound

SECURITY FIRST

MCALLEN, TX
3
Star Rating
Started in 1947, SECURITY FIRST is an NCUA-insured credit union based in MCALLEN, TX. Regulatory filings show the credit union having $348.1 million in assets, as of December 31, 2017.

Thanks to the efforts of 122 full-time employees, the credit union has amassed loans and leases worth $244.0 million. Its 45,505 members currently have $311.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SECURITY FIRST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial strength. It works as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SECURITY FIRST received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

SECURITY FIRST's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, reducing 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 depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SECURITY FIRST scored 36 out of a possible 40 points, less than the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

SECURITY FIRST did below-average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One indication that the credit union is beating 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.