Safe and Sound

HAVERHILL FIRE DEPARTMENT

HAVERHILL, MA
4
Star Rating
HAVERHILL FIRE DEPARTMENT is an NCUA-insured credit union founded in 1933 and currently based in HAVERHILL, MA. As of December 31, 2017, the credit union held assets of $17.9 million.

Thanks to the efforts of 4 full-time employees, the credit union holds loans and leases worth $6.3 million. HAVERHILL FIRE DEPARTMENT's 1,190 members currently have $15.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAVERHILL FIRE DEPARTMENT exhibited a good condition, earning 4 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 American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during times of economic instability for the credit union. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, HAVERHILL FIRE DEPARTMENT achieved a score of 16 out of a possible 30 points, better than the national average of 15.65.

HAVERHILL FIRE DEPARTMENT had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, an indication that it's running neck and neck with 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 problem assets, such as past-due loans.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

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

HAVERHILL FIRE DEPARTMENT's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

HAVERHILL FIRE DEPARTMENT underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

HAVERHILL FIRE DEPARTMENT had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.