Safe and Sound

THE NEW ORLEANS FIREMEN'S

METAIRIE, LA
2
Star Rating
Founded in 1934, THE NEW ORLEANS FIREMEN'S is an NCUA-insured credit union headquartered in METAIRIE, LA. The credit union has $164.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $133.0 million on deposit tended by 87 full-time employees. With that footprint, the credit union holds loans and leases worth $133.0 million. Its 26,896 members currently have $145.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THE NEW ORLEANS FIREMEN'S exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is crucial. When looking at safety and soundness, the more capital, the better.

THE NEW ORLEANS FIREMEN'S finished below the national average of 15.65 on our test to measure capital adequacy, scoring 6 out of a possible 30 points.

THE NEW ORLEANS FIREMEN'S had a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

THE NEW ORLEANS FIREMEN'S finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning 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, likely making the credit union better prepared to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

THE NEW ORLEANS FIREMEN'S scored 2 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.