Safe and Sound

TOPEKA FIREMEN'S

Topeka, KS
5
Star Rating
Started in 1939, TOPEKA FIREMEN'S is an NCUA-insured credit union headquartered in Topeka, KS. As of December 31, 2017, the credit union held assets of $9.3 million.

The credit union currently holds loans and leases worth $4.7 million. TOPEKA FIREMEN'S's 993 members currently have $6.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOPEKA FIREMEN'S exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that 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.

On our test to measure the adequacy of a credit union's capital, TOPEKA FIREMEN'S scored 30 out of a possible 30 points, better than the national average of 15.65.

TOPEKA FIREMEN'S 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 loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these kinds of assets means a credit union could have to use capital to absorb losses, decreasing 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 money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, TOPEKA FIREMEN'S scored 40 out of a possible 40 points, above the national average of 38.09 points.

A lower-than-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 earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

TOPEKA FIREMEN'S did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One indication that TOPEKA FIREMEN'S is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.