Safe and Sound

IBEW 76

Tacoma, WA
3
Star Rating
Founded in 1957, IBEW 76 is an NCUA-insured credit union based in TACOMA, WA. The credit union holds assets of $24.7 million, according to December 31, 2017, regulatory filings.

Members have $8.1 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $8.1 million. Its 1,483 members currently have $21.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IBEW 76 exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, IBEW 76 scored 16 out of a possible 30 points, beating the national average of 15.65.

IBEW 76 had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets means a credit union may eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, IBEW 76 scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of IBEW 76's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, IBEW 76 scored 0 out of a possible 30, coming in below the national average of 10.11.

One sign that IBEW 76 is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.