Safe and Sound

GENERAL ELECTRIC EMPLOYEES

Milford, CT
4
Star Rating
GENERAL ELECTRIC EMPLOYEES is an NCUA-insured credit union founded in 1940 and currently based in Milford, CT. The credit union has assets of $213.1 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 52 full-time employees, the credit union holds loans and leases worth $102.1 million. GENERAL ELECTRIC EMPLOYEES's 26,645 members currently have $194.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GENERAL ELECTRIC EMPLOYEES 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 key criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark 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 an institution's financial stability, capital is crucial. From a safety and soundness perspective, more capital is preferred.

GENERAL ELECTRIC EMPLOYEES fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

GENERAL ELECTRIC EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

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 problem assets, such as unpaid loans.

Having extensive holdings of these types of assets means a credit union may have to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

GENERAL ELECTRIC EMPLOYEES came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 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 ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

GENERAL ELECTRIC EMPLOYEES scored 12 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

GENERAL ELECTRIC EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.