Safe and Sound

CONSTRUCTION INDUSTRIES

LINCOLN, NE
4
Star Rating
LINCOLN, NE-based CONSTRUCTION INDUSTRIES is an NCUA-insured credit union founded in 1969. Regulatory filings show the credit union having $2.2 million in assets, as of December 31, 2017.

The credit union has amassed loans and leases worth $1.2 million. CONSTRUCTION INDUSTRIES's 731 members currently have $1.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONSTRUCTION INDUSTRIES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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 economic instability for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

CONSTRUCTION INDUSTRIES scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 16 out of a possible 30 points.

CONSTRUCTION INDUSTRIES had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of CONSTRUCTION INDUSTRIES's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, CONSTRUCTION INDUSTRIES scored 0 out of a possible 30, below the national average of 10.11.

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