Safe and Sound

CHICAGO FIRE OFFICERS' ASSOCIATION

Chicago, IL
4
Star Rating
Founded in 1957, CHICAGO FIRE OFFICERS' ASSOCIATION is an NCUA-insured credit union based in Chicago, IL. As of December 31, 2017, the credit union held assets of $9.9 million.

With 3 full-time employees, the credit union holds loans and leases worth $4.3 million. Its 1,056 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHICAGO FIRE OFFICERS' ASSOCIATION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during times of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial fortitude, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

CHICAGO FIRE OFFICERS' ASSOCIATION did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 20 out of a possible 30 points.

CHICAGO FIRE OFFICERS' ASSOCIATION's capitalization ratio of 20.00 percent in our test was higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these kinds of assets could eventually have 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 no longer earning money, diminishing earnings and increasing the chances of a future failure.

CHICAGO FIRE OFFICERS' ASSOCIATION scored above 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 troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, CHICAGO FIRE OFFICERS' ASSOCIATION scored 2 out of a possible 30, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.