Safe and Sound

IDAHO CENTRAL

CHUBBUCK, ID
5
Star Rating
Founded in 1940, IDAHO CENTRAL is an NCUA-insured credit union based in CHUBBUCK, ID. As of June 30, 2017, the credit union had assets of $3.21 billion.

Thanks to the work of 816 full-time employees, the credit union has amassed loans and leases worth $2.92 billion. Its 274,953 members currently have $2.64 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, IDAHO CENTRAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key 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 bulwark against losses and affords protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is valuable. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, IDAHO CENTRAL received a score of 8 out of a possible 30 points, lower than the national average of 15.26.

IDAHO CENTRAL's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these types of assets may eventually force a credit union to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

IDAHO CENTRAL exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 4.00 percent in our test was potentially indicative of superior financial strength compared to 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 use them to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

IDAHO CENTRAL scored 26 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 17.00 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.