Safe and Sound

BATON ROUGE FIRE DEPARTMENT

Baton Rouge, LA
5
Star Rating
BATON ROUGE FIRE DEPARTMENT is a Baton Rouge, LA-based, NCUA-insured credit union that opened its doors in 1936. Regulatory filings show the credit union having $50.6 million in assets, as of December 31, 2017.

Members have $46.1 million on deposit tended by 11 full-time employees. With that footprint, the credit union has amassed loans and leases worth $46.1 million. BATON ROUGE FIRE DEPARTMENT's 5,242 members currently have $40.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BATON ROUGE FIRE DEPARTMENT exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. 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 an institution's financial resilience, capital is crucial. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

BATON ROUGE FIRE DEPARTMENT exceeded the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

BATON ROUGE FIRE DEPARTMENT had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

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.

Having large numbers of these types of assets means a credit union may eventually have to use capital to cover losses, decreasing 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, pushing down earnings and elevating the risk of a future failure.

BATON ROUGE FIRE DEPARTMENT scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

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 can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

BATON ROUGE FIRE DEPARTMENT beat the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.