Safe and Sound

IBEW LOCAL UNION 80

Chesapeake, VA
2
Star Rating
IBEW LOCAL UNION 80 is a Chesapeake, VA-based, NCUA-insured credit union started in 1970. The credit union has $1.1 million in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $327,857. Its 650 members currently have $965,733 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IBEW LOCAL UNION 80 exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

IBEW LOCAL UNION 80 came in below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

IBEW LOCAL UNION 80 had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets may eventually be required 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 thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

IBEW LOCAL UNION 80 scored 28 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.09.

Troubled assets made up 0.00 percent of IBEW LOCAL UNION 80's total assets in our test, lower than the national average and suggestive 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 buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

IBEW LOCAL UNION 80 received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

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 running ahead of 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.