Safe and Sound

GIBBONS AND REED EMPLOYEES

SALT LAKE CITY, UT
5
Star Rating
SALT LAKE CITY, UT-based GIBBONS AND REED EMPLOYEES is an NCUA-insured credit union started in 1962. As of December 31, 2017, the credit union held assets of $5.3 million.

Members have $2.2 million on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $2.2 million. GIBBONS AND REED EMPLOYEES's 1,240 members currently have $4.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GIBBONS AND REED EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score U.S. 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 bulwark against losses and provides protection for members during periods of financial instability for the credit union. It follows then that an institution's level of capital is a valuable measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, GIBBONS AND REED EMPLOYEES achieved a score of 24 out of a possible 30 points, better than the national average of 15.65.

GIBBONS AND REED EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, 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, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a failure in the future.

GIBBONS AND REED EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

A below-average ratio of troubled 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 long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

GIBBONS AND REED EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

GIBBONS AND REED EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.