Safe and Sound

FIREFIGHTERS COMMUNITY CU

Cleveland, OH
3
Star Rating
Cleveland, OH-based FIREFIGHTERS COMMUNITY CU is an NCUA-insured credit union started in 0. Regulatory filings show the credit union having assets of $248.7 million, as of December 31, 2017.

Thanks to the efforts of 72 full-time employees, the credit union has amassed loans and leases worth $181.5 million. FIREFIGHTERS COMMUNITY CU's 32,890 members currently have $221.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIREFIGHTERS COMMUNITY CU exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score U.S. 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. It follows then that an institution's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

FIREFIGHTERS COMMUNITY CU received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

FIREFIGHTERS COMMUNITY CU had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union could have to use capital to cover losses, decreasing its equity cushion. 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.

FIREFIGHTERS COMMUNITY CU scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

A lower-than-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 profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, FIREFIGHTERS COMMUNITY CU scored 2 out of a possible 30, falling short of the national average of 10.11.

FIREFIGHTERS COMMUNITY CU had an earnings ratio of 0.00 percent in our test, higher 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.