Safe and Sound

ERIE FIREFIGHTERS

Erie, PA
4
Star Rating
Erie, PA-based ERIE FIREFIGHTERS is an NCUA-insured credit union started in 1953. As of December 31, 2017, the credit union had assets of $8.6 million.

Members have $2.5 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.5 million. ERIE FIREFIGHTERS's 795 members currently have $7.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ERIE FIREFIGHTERS 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 key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, more capital is better.

ERIE FIREFIGHTERS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

ERIE FIREFIGHTERS had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate 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 loans.

Having large numbers of these types of assets suggests a credit union could eventually have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

ERIE FIREFIGHTERS scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

A below-average ratio of troubled 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 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, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

ERIE FIREFIGHTERS scored 8 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

ERIE FIREFIGHTERS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.