Safe and Sound

LAKEWOOD FIRE FIGHTERS

Lakewood, OH
5
Star Rating
Started in 0, LAKEWOOD FIRE FIGHTERS is an NCUA-insured credit union headquartered in Lakewood, OH. Regulatory filings show the credit union having $1.5 million in assets, as of December 31, 2017.

The credit union has amassed loans and leases worth $377,776. Its 189 members currently have $1.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAKEWOOD FIRE FIGHTERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a valuable measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, LAKEWOOD FIRE FIGHTERS achieved a score of 30 out of a possible 30 points, beating out the national average of 15.65.

LAKEWOOD FIRE FIGHTERS had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

LAKEWOOD FIRE FIGHTERS did better than 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 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 long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, LAKEWOOD FIRE FIGHTERS scored 4 out of a possible 30, lower than the national average of 10.11.

LAKEWOOD FIRE FIGHTERS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's running ahead of 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.