Safe and Sound

LONG BEACH FIREMEN S

Long Beach, CA
5
Star Rating
Started in 1936, LONG BEACH FIREMEN S is an NCUA-insured credit union headquartered in Long Beach, CA. As of December 31, 2017, the credit union held assets of $187.1 million.

Members have $119.0 million on deposit tended by 10 full-time employees. With that footprint, the credit union has amassed loans and leases worth $119.0 million. LONG BEACH FIREMEN S's 3,254 members currently have $151.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LONG BEACH FIREMEN S 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 key 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

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, LONG BEACH FIREMEN S achieved a score of 30 out of a possible 30 points, beating the national average of 15.65.

LONG BEACH FIREMEN S had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, LONG BEACH FIREMEN S scored 40 out of a possible 40 points, beating the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

LONG BEACH FIREMEN S outperformed the average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

One indication that the credit union is beating 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.