Safe and Sound

UTAH FIRST

SALT LAKE CITY, UT
5
Star Rating
UTAH FIRST is a SALT LAKE CITY, UT-based, NCUA-insured credit union that opened its doors in 1935. Regulatory filings show the credit union having assets of $350.0 million, as of December 31, 2017.

Thanks to the efforts of 84 full-time employees, the credit union currently holds loans and leases worth $294.3 million. UTAH FIRST's 21,476 members currently have $279.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UTAH FIRST exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

UTAH FIRST received a score of 14 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.

UTAH FIRST's capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

UTAH FIRST fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

UTAH FIRST scored 24 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.11.

UTAH FIRST had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's doing better than 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.