Safe and Sound

U-1ST COMMUNITY

CARLSBAD, NM
5
Star Rating
U-1ST COMMUNITY is an NCUA-insured credit union started in 1955 and currently headquartered in CARLSBAD, NM. Regulatory filings show the credit union having $6.9 million in assets, as of December 31, 2017.

Thanks to the efforts of 3 full-time employees, the credit union has amassed loans and leases worth $4.2 million. U-1ST COMMUNITY's 1,041 members currently have $5.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U-1ST COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It works as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, the higher the capital, the better.

U-1ST COMMUNITY did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 22 out of a possible 30 points.

U-1ST COMMUNITY appears to be on more solid financial footing than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these types of assets could eventually be required to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

U-1ST COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to 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, 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 are less able to do those things.

U-1ST COMMUNITY did below-average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One sign that U-1ST COMMUNITY 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.