Safe and Sound

PROFESSIONAL FIRE FIGHTERS

SHREVEPORT, LA
5
Star Rating
SHREVEPORT, LA-based PROFESSIONAL FIRE FIGHTERS is an NCUA-insured credit union started in 1939. As of June 30, 2017, the credit union held assets of $40.9 million.

With 7 full-time employees, the credit union holds loans and leases worth $22.0 million. Its 2,507 members currently have $30.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PROFESSIONAL FIRE FIGHTERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of economic instability for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, PROFESSIONAL FIRE FIGHTERS racked up 30 out of a possible 30 points, better than the national average of 15.26.

PROFESSIONAL FIRE FIGHTERS's capitalization ratio of 19.00 percent in our test was above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, diminishing its buffer of equity. 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, decreasing earnings and increasing the risk of a failure in the future.

PROFESSIONAL FIRE FIGHTERS scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.

A below-average ratio of problem assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

PROFESSIONAL FIRE FIGHTERS scored 10 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.31.

PROFESSIONAL FIRE FIGHTERS had an earnings ratio of 4.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.