Safe and Sound

ELECTRICAL WORKERS LOCAL 130

METAIRIE, LA
3
Star Rating
Founded in 1955, ELECTRICAL WORKERS LOCAL 130 is an NCUA-insured credit union based in METAIRIE, LA. As of December 31, 2017, the credit union had assets of $4.8 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.1 million. ELECTRICAL WORKERS LOCAL 130's 1,279 members currently have $4.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELECTRICAL WORKERS LOCAL 130 exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

ELECTRICAL WORKERS LOCAL 130 received a score of 12 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

ELECTRICAL WORKERS LOCAL 130 appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to cover losses, diminishing its equity cushion. 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, diminishing earnings and elevating the chances of a failure in the future.

ELECTRICAL WORKERS LOCAL 130 scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

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

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

ELECTRICAL WORKERS LOCAL 130 underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

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