Safe and Sound

PFD FIREFIGHTERS CREDIT UNION INC.

Portsmouth, VA
4
Star Rating
PFD FIREFIGHTERS CREDIT UNION INC. is an NCUA-insured credit union started in 1955 and currently headquartered in Portsmouth, VA. Regulatory filings show the credit union having $27.2 million in assets, as of December 31, 2017.

With 6 full-time employees, the credit union holds loans and leases worth $22.6 million. Its 2,379 members currently have $23.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PFD FIREFIGHTERS CREDIT UNION INC. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It acts 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 more capital, the better.

PFD FIREFIGHTERS CREDIT UNION INC. racked up 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

PFD FIREFIGHTERS CREDIT UNION INC. appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets could 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 money, reducing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, PFD FIREFIGHTERS CREDIT UNION INC. scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

Troubled assets made up 0.00 percent of PFD FIREFIGHTERS CREDIT UNION INC.'s total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, PFD FIREFIGHTERS CREDIT UNION INC. scored 6 out of a possible 30, 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, a sign 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.