Safe and Sound

WATERLOO FIREMEN'S

Waterloo, IA
4
Star Rating
Waterloo, IA-based WATERLOO FIREMEN'S is an NCUA-insured credit union founded in 1933. Regulatory filings show the credit union having assets of $1.9 million, as of December 31, 2017.

The credit union currently holds loans and leases worth $1.7 million. WATERLOO FIREMEN'S's 286 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WATERLOO FIREMEN'S exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of financial instability for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

WATERLOO FIREMEN'S racked up 18 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

WATERLOO FIREMEN'S had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, shrinking 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 interest for the credit union, decreasing earnings and elevating the chances of a future failure.

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, WATERLOO FIREMEN'S scored 0 out of a possible 30, failing to reach 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, an indication that it's doing better than 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.