Safe and Sound

ELECTRIC MACHINERY EMPLOYEES

MINNEAPOLIS, MN
5
Star Rating
ELECTRIC MACHINERY EMPLOYEES is an NCUA-insured credit union started in 1946 and currently based in MINNEAPOLIS, MN. The credit union holds assets of $8.6 million, according to December 31, 2017, regulatory filings.

Members have $4.7 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.7 million. Its 1,217 members currently have $6.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELECTRIC MACHINERY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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 fortitude, capital is key. It works as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the higher the capital, the better.

ELECTRIC MACHINERY EMPLOYEES racked up 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

ELECTRIC MACHINERY EMPLOYEES had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate 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.

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

ELECTRIC MACHINERY EMPLOYEES exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

ELECTRIC MACHINERY EMPLOYEES scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One sign that ELECTRIC MACHINERY EMPLOYEES 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.