Safe and Sound

PEORIA FIRE FIGHTERS

Peoria, IL
5
Star Rating
Peoria, IL-based PEORIA FIRE FIGHTERS is an NCUA-insured credit union started in 1952. Regulatory filings show the credit union having assets of $4.7 million, as of December 31, 2017.

The credit union has amassed loans and leases worth $3.3 million. PEORIA FIRE FIGHTERS's 372 members currently have $3.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PEORIA FIRE FIGHTERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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 periods of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

PEORIA FIRE FIGHTERS scored 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

PEORIA FIRE FIGHTERS had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having a large number of these types of assets means a credit union may eventually have to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a future failure.

PEORIA FIRE FIGHTERS exceeded 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 troubled 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 making money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, PEORIA FIRE FIGHTERS scored 6 out of a possible 30, less than the national average of 10.11.

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, above 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.