Safe and Sound

GESB SHEET METAL WORKERS

Portage, IN
4
Star Rating
GESB SHEET METAL WORKERS is an NCUA-insured credit union started in 1960 and currently based in Portage, IN. The credit union holds $9.4 million in assets, according to December 31, 2017, regulatory filings.

Members have $5.6 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.6 million. GESB SHEET METAL WORKERS's 1,945 members currently have $8.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GESB SHEET METAL WORKERS 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 major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, GESB SHEET METAL WORKERS received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

GESB SHEET METAL WORKERS's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a future failure.

GESB SHEET METAL WORKERS scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

GESB SHEET METAL WORKERS scored 10 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One indication that GESB SHEET METAL WORKERS is outperforming 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.