Safe and Sound

ELECTRIC ENERGY INC EMPLOYEES

Metropolis, IL
4
Star Rating
Started in 1954, ELECTRIC ENERGY INC EMPLOYEES is an NCUA-insured credit union headquartered in Metropolis, IL. As of June 30, 2017, the credit union had assets of $2.0 million.

The credit union holds loans and leases worth $1.3 million. ELECTRIC ENERGY INC EMPLOYEES's 695 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ELECTRIC ENERGY INC EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ELECTRIC ENERGY INC EMPLOYEES achieved a score of 24 out of a possible 30 points, exceeding the national average of 15.26.

ELECTRIC ENERGY INC EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 17.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended 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 troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a future failure.

ELECTRIC ENERGY INC EMPLOYEES finished below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A greater-than-average ratio of problem assets of 10.00 percent in our test was a potential cause for concern for the credit union.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

ELECTRIC ENERGY INC EMPLOYEES scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.