Safe and Sound

ELECTRICIANS' LOCAL 349

MIAMI, FL
4
Star Rating
MIAMI, FL-based ELECTRICIANS' LOCAL 349 is an NCUA-insured credit union started in 1947. As of December 31, 2017, the credit union held assets of $4.3 million.

With 2 full-time employees, the credit union holds loans and leases worth $1.2 million. ELECTRICIANS' LOCAL 349's 754 members currently have $3.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELECTRICIANS' LOCAL 349 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 key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, ELECTRICIANS' LOCAL 349 scored 28 out of a possible 30 points, better than the national average of 15.65.

ELECTRICIANS' LOCAL 349's capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets may eventually be forced to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

ELECTRICIANS' LOCAL 349 scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive 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 may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

ELECTRICIANS' LOCAL 349 scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that ELECTRICIANS' LOCAL 349 is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.