Safe and Sound

THE FAMILY FIRST

Great Falls, MT
4
Star Rating
THE FAMILY FIRST is an NCUA-insured credit union started in 1956 and currently headquartered in Great Falls, MT. The credit union holds $13.2 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $5.6 million. Its 1,819 members currently have $12.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THE FAMILY FIRST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade 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 economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial strength, capital is key. When looking at safety and soundness, the higher the capital, the better.

THE FAMILY FIRST received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

THE FAMILY FIRST appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

THE FAMILY FIRST exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-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

A credit union's ability to earn money affects its long-term survivability. Earnings may 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 better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

THE FAMILY FIRST scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.