Safe and Sound

NASHVILLE FIREMEN'S

NASHVILLE, TN
5
Star Rating
Started in 1932, NASHVILLE FIREMEN'S is an NCUA-insured credit union headquartered in NASHVILLE, TN. Regulatory filings show the credit union having assets of $23.9 million, as of December 31, 2017.

With 7 full-time employees, the credit union holds loans and leases worth $17.1 million. Its 2,591 members currently have $19.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NASHVILLE FIREMEN'S exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of 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?

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THE INSTITUTION'S SCORE

Capital Score

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

NASHVILLE FIREMEN'S beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 26 out of a possible 30 points.

NASHVILLE FIREMEN'S appears to be more resilient than its peers, with a capitalization ratio of 26.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually require a credit union 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 money, resulting in diminished earnings and potentially more risk of a future failure.

NASHVILLE FIREMEN'S exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

NASHVILLE FIREMEN'S scored 8 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's doing better than 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.