Safe and Sound

GIBBS ALUMINUM

Henderson, KY
5
Star Rating
GIBBS ALUMINUM is a Henderson, KY-based, NCUA-insured credit union founded in 1967. As of December 31, 2017, the credit union held assets of $5.6 million.

Members have $3.3 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.3 million. Its 936 members currently have $3.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GIBBS ALUMINUM exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It works as a cushion against losses and provides protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, GIBBS ALUMINUM racked up 30 out of a possible 30 points, beating out the national average of 15.65.

GIBBS ALUMINUM appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these kinds of assets suggests a credit union may have to use capital to cover losses, shrinking its cushion of equity. 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 future failure.

On Bankrate's test of asset quality, GIBBS ALUMINUM 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 earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

GIBBS ALUMINUM scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better 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.