Safe and Sound

IDAHO CENTRAL

CHUBBUCK, ID
5
Star Rating
IDAHO CENTRAL is a CHUBBUCK, ID-based, NCUA-insured credit union dating back to 1940. The credit union has assets of $3.54 billion, according to December 31, 2017, regulatory filings.

With 938 full-time employees, the credit union currently holds loans and leases worth $3.22 billion. Its 298,350 members currently have $2.85 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IDAHO CENTRAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It works as a buffer against losses and affords protection for members during times of economic instability for the credit union. When looking at safety and soundness, more capital is preferred.

IDAHO CENTRAL received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

IDAHO CENTRAL appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

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 past-due loans.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, diminishing 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, diminishing earnings and elevating the risk of a future failure.

IDAHO CENTRAL exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, IDAHO CENTRAL scored 26 out of a possible 30, exceeding the national average of 10.11.

One sign that IDAHO CENTRAL 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.