Safe and Sound

SOUTH BEND FIREFIGHTERS

SOUTH BEND, IN
5
Star Rating
SOUTH BEND FIREFIGHTERS is an NCUA-insured credit union founded in 1959 and currently based in SOUTH BEND, IN. As of December 31, 2017, the credit union held assets of $41.0 million.

With 8 full-time employees, the credit union has amassed loans and leases worth $27.6 million. SOUTH BEND FIREFIGHTERS's 3,504 members currently have $29.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH BEND FIREFIGHTERS 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 important 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 cushion against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a valuable measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

SOUTH BEND FIREFIGHTERS scored 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

SOUTH BEND FIREFIGHTERS's capitalization ratio of 30.00 percent in our test was better 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'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 problem assets, such as unpaid mortgages.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on its equity cushion. 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 chances of a future failure.

On Bankrate's test of asset quality, SOUTH BEND FIREFIGHTERS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of SOUTH BEND FIREFIGHTERS's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

SOUTH BEND FIREFIGHTERS exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that SOUTH BEND FIREFIGHTERS is outperforming 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.