Safe and Sound

HAMMOND FIREFIGHTERS ASSN.

Hammond, IN
5
Star Rating
HAMMOND FIREFIGHTERS ASSN. is an NCUA-insured credit union started in 1938 and currently headquartered in Hammond, IN. The credit union holds assets of $1.5 million, according to December 31, 2017, regulatory filings.

Members have $420,283 on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $420,283. HAMMOND FIREFIGHTERS ASSN.'s 360 members currently have $1.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAMMOND FIREFIGHTERS ASSN. exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is valuable. It acts as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, HAMMOND FIREFIGHTERS ASSN. scored 30 out of a possible 30 points, beating the national average of 15.65.

HAMMOND FIREFIGHTERS ASSN.'s capitalization ratio of 30.00 percent in our test was above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the chances of a future failure.

HAMMOND FIREFIGHTERS ASSN. beat out the national average of 38.09 on Bankrate's test of asset quality, 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 greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

HAMMOND FIREFIGHTERS ASSN. did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

HAMMOND FIREFIGHTERS ASSN. had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.