Safe and Sound

IBEW 968

PARKERSBURG, WV
3
Star Rating
Founded in 1960, IBEW 968 is an NCUA-insured credit union headquartered in PARKERSBURG, WV. As of December 31, 2017, the credit union held assets of $5.2 million.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $1.3 million. IBEW 968's 353 members currently have $4.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IBEW 968 exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is key. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, IBEW 968 racked up 16 out of a possible 30 points, better than the national average of 15.65.

IBEW 968 had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets means a credit union may have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a future failure.

IBEW 968 beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem 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 earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, IBEW 968 scored 0 out of a possible 30, failing to reach the national average of 10.11.

One sign that IBEW 968 is doing better than 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.