Safe and Sound

I.B.E.W. LOCAL #146

Decatur, IL
4
Star Rating
Founded in 1958, I.B.E.W. LOCAL #146 is an NCUA-insured credit union headquartered in Decatur, IL. The credit union has assets of $3.7 million, according to December 31, 2017, regulatory filings.

I.B.E.W. LOCAL #146's 618 members currently have $3.3 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.7 million.

Overall, Bankrate believes that, as of December 31, 2017, I.B.E.W. LOCAL #146 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

I.B.E.W. LOCAL #146 fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

I.B.E.W. LOCAL #146's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets may eventually be forced 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 interest for the credit union, pushing down earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, I.B.E.W. LOCAL #146 scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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, giving a boost to its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

I.B.E.W. LOCAL #146 scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below 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.