Safe and Sound

IBEW & UNITED WORKERS

PORTLAND, OR
4
Star Rating
Founded in 1954, IBEW & UNITED WORKERS is an NCUA-insured credit union based in PORTLAND, OR. The credit union holds assets of $81.1 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 16 full-time employees, the credit union holds loans and leases worth $42.3 million. IBEW & UNITED WORKERS's 13,753 members currently have $74.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IBEW & UNITED WORKERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

IBEW & UNITED WORKERS received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

IBEW & UNITED WORKERS had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets means a credit union may have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, IBEW & UNITED WORKERS scored 40 out of a possible 40 points, above the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than 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 long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

IBEW & UNITED WORKERS scored 14 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

IBEW & UNITED WORKERS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming 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.