Safe and Sound

DES MOINES FIRE DEPARTMENT

Des Moines, IA
5
Star Rating
Des Moines, IA-based DES MOINES FIRE DEPARTMENT is an NCUA-insured credit union started in 1931. As of December 31, 2017, the credit union held assets of $4.5 million.

The credit union currently holds loans and leases worth $3.0 million. DES MOINES FIRE DEPARTMENT's 956 members currently have $3.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DES MOINES FIRE DEPARTMENT exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important 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

Capital works as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial resilience, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, DES MOINES FIRE DEPARTMENT scored 28 out of a possible 30 points, above the national average of 15.65.

DES MOINES FIRE DEPARTMENT's capitalization ratio of 28.00 percent in our test was above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

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

Having lots of these types of assets means a credit union could eventually have to use capital to cover losses, diminishing 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 failure in the future.

DES MOINES FIRE DEPARTMENT scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to 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, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, DES MOINES FIRE DEPARTMENT scored 2 out of a possible 30, failing to reach the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.