Safe and Sound

ELECTRIC SERVICE

NASHVILLE, TN
4
Star Rating
ELECTRIC SERVICE is an NCUA-insured credit union founded in 1951 and currently based in NASHVILLE, TN. As of December 31, 2017, the credit union had assets of $66.0 million.

With 20 full-time employees, the credit union has amassed loans and leases worth $47.1 million. ELECTRIC SERVICE's 7,474 members currently have $56.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELECTRIC SERVICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is important. It works as a bulwark against losses and provides protection for members during periods of financial trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

ELECTRIC SERVICE came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

ELECTRIC SERVICE's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis 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 extensive holdings of these types of assets may eventually require a credit union to use capital to cover losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, ELECTRIC SERVICE scored 40 out of a possible 40 points, better than the national average of 38.09 points.

ELECTRIC SERVICE's ratio of problem assets was 0.00 percent in our test, less than 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 has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ELECTRIC SERVICE scored 2 out of a possible 30, falling short of the national average of 10.11.

ELECTRIC SERVICE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.