Safe and Sound

ELECTRICAL WORKERS NO 558

SHEFFIELD, AL
5
Star Rating
SHEFFIELD, AL-based ELECTRICAL WORKERS NO 558 is an NCUA-insured credit union founded in 1958. Regulatory filings show the credit union having assets of $24.8 million, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $14.9 million. ELECTRICAL WORKERS NO 558's 2,664 members currently have $19.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELECTRICAL WORKERS NO 558 exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during times of financial trouble for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

ELECTRICAL WORKERS NO 558 achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

ELECTRICAL WORKERS NO 558 appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these types of assets could eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

ELECTRICAL WORKERS NO 558 scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

ELECTRICAL WORKERS NO 558's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, ELECTRICAL WORKERS NO 558 scored 8 out of a possible 30, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.