Safe and Sound

540 I.B.E.W.

Massillon, OH
4
Star Rating
540 I.B.E.W. is an NCUA-insured credit union founded in 0 and currently headquartered in Massillon, OH. The credit union has assets of $1.1 million, according to December 31, 2017, regulatory filings.

540 I.B.E.W.'s 466 members currently have $907,063 in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $460,459.

Overall, Bankrate believes that, as of December 31, 2017, 540 I.B.E.W. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is important. From a safety and soundness perspective, the more capital, the better.

540 I.B.E.W. exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.

540 I.B.E.W. had a capitalization ratio of 20.00 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 try to understand 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.

A credit union with a large number of these types of assets could eventually be forced 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, pushing down earnings and increasing the chances of a failure in the future.

540 I.B.E.W. exceeded the national average of 38.09 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 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

540 I.B.E.W. received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

540 I.B.E.W. had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's beating 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.