Safe and Sound

GAS AND ELECTRIC

ROCK ISLAND, IL
4
Star Rating
GAS AND ELECTRIC is an NCUA-insured credit union founded in 1935 and currently headquartered in ROCK ISLAND, IL. Regulatory filings show the credit union having $74.7 million in assets, as of December 31, 2017.

Members have $48.1 million on deposit tended by 11 full-time employees. With that footprint, the credit union holds loans and leases worth $48.1 million. GAS AND ELECTRIC's 5,143 members currently have $65.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GAS AND ELECTRIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, GAS AND ELECTRIC received a score of 12 out of a possible 30 points, less than the national average of 15.65.

GAS AND ELECTRIC had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, cutting down on its equity cushion. 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 test of asset quality, GAS AND ELECTRIC scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-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

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, GAS AND ELECTRIC scored 12 out of a possible 30, beating the national average of 10.11.

One indication that the credit union is beating 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.