Safe and Sound

SOLANO FIRST

FAIRFIELD, CA
1
Star Rating
Started in 1956, SOLANO FIRST is an NCUA-insured credit union headquartered in FAIRFIELD, CA. As of December 31, 2017, the credit union held assets of $142.5 million.

With 40 full-time employees, the credit union currently holds loans and leases worth $92.1 million. SOLANO FIRST's 10,333 members currently have $131.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOLANO FIRST exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. 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.

On our test to measure capital adequacy, SOLANO FIRST received a score of 6 out of a possible 30 points, less than the national average of 15.65.

SOLANO FIRST had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, suggesting 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 mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets suggests a credit union could eventually have 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 future failure.

SOLANO FIRST fell below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 points .

SOLANO FIRST's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

SOLANO FIRST scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that SOLANO FIRST 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.