Safe and Sound

HOUSTON TEXAS FIRE FIGHTERS

Houston, TX
4
Star Rating
HOUSTON TEXAS FIRE FIGHTERS is an NCUA-insured credit union founded in 1935 and currently based in Houston, TX. Regulatory filings show the credit union having assets of $267.3 million, as of December 31, 2017.

Thanks to the efforts of 61 full-time employees, the credit union holds loans and leases worth $133.9 million. HOUSTON TEXAS FIRE FIGHTERS's 16,789 members currently have $225.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOUSTON TEXAS FIRE FIGHTERS 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 key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It works as a bulwark against losses and provides protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

HOUSTON TEXAS FIRE FIGHTERS exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 20 out of a possible 30 points.

HOUSTON TEXAS FIRE FIGHTERS's capitalization ratio of 20.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

HOUSTON TEXAS FIRE FIGHTERS beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem 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 has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

HOUSTON TEXAS FIRE FIGHTERS fell behind the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.