Safe and Sound

IBEW LU 278

CORPUS CHRISTI, TX
NR
Star Rating
CORPUS CHRISTI, TX-based IBEW LU 278 is an NCUA-insured credit union started in 1958. As of December 31, 2017, the credit union held assets of $1.9 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $800,979. IBEW LU 278's 752 members currently have $1.8 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

IBEW LU 278 received a score of 4 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

IBEW LU 278's capitalization ratio of 4.00 percent in our test was lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having large numbers of these types of assets means a credit union could eventually have to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

IBEW LU 278 scored 20 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

A lower-than-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 profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, IBEW LU 278 scored 0 out of a possible 30, failing to reach the national average of 10.11.

One sign that IBEW LU 278 is beating its peers in this area was its earnings ratio of -1.00 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.