Safe and Sound

ELECTRICAL WORKERS LOCAL 58

DETROIT, MI
4
Star Rating
ELECTRICAL WORKERS LOCAL 58 is a DETROIT, MI-based, NCUA-insured credit union dating back to 1955. The credit union holds $14.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $4.6 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $4.6 million. ELECTRICAL WORKERS LOCAL 58's 2,307 members currently have $12.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELECTRICAL WORKERS LOCAL 58 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important 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 during periods of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. When looking at safety and soundness, the more capital, the better.

ELECTRICAL WORKERS LOCAL 58 received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

ELECTRICAL WORKERS LOCAL 58's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually have 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 thus aren't earning money, diminishing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, ELECTRICAL WORKERS LOCAL 58 scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

ELECTRICAL WORKERS LOCAL 58 underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

ELECTRICAL WORKERS LOCAL 58 had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's beating 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.