Safe and Sound

EAST CHICAGO FIREMEN'S

East Chicago, IN
4
Star Rating
East Chicago, IN-based EAST CHICAGO FIREMEN'S is an NCUA-insured credit union started in 1938. As of December 31, 2017, the credit union held assets of $958,533.

EAST CHICAGO FIREMEN'S's 217 members currently have $788,835 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $92,534.

Overall, Bankrate believes that, as of December 31, 2017, EAST CHICAGO FIREMEN'S exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, EAST CHICAGO FIREMEN'S achieved a score of 26 out of a possible 30 points, exceeding the national average of 15.65.

EAST CHICAGO FIREMEN'S appears to be stronger than its peers, with a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be forced to use capital to cover losses, reducing 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 elevating the risk of a failure in the future.

On Bankrate's test of asset quality, EAST CHICAGO FIREMEN'S scored 40 out of a possible 40 points, above the national average of 38.09 points.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

EAST CHICAGO FIREMEN'S underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

EAST CHICAGO FIREMEN'S had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.