Safe and Sound

IBM SOUTHEAST EMPLOYEES

BOCA RATON, FL
4
Star Rating
Started in 1969, IBM SOUTHEAST EMPLOYEES is an NCUA-insured credit union headquartered in BOCA RATON, FL. Regulatory filings show the credit union having assets of $1.08 billion, as of December 31, 2017.

With 263 full-time employees, the credit union has amassed loans and leases worth $826.7 million. Its 79,500 members currently have $939.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IBM SOUTHEAST EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

IBM SOUTHEAST EMPLOYEES received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

IBM SOUTHEAST EMPLOYEES's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, reducing its equity cushion. 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 diminished earnings and potentially more risk of a failure in the future.

IBM SOUTHEAST EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

A below-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

How successful a credit union is at earning 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, likely making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

IBM SOUTHEAST EMPLOYEES received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One indication that IBM SOUTHEAST EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.