Safe and Sound

IEC

Springfield, IL
4
Star Rating
IEC is an NCUA-insured credit union founded in 1970 and currently headquartered in Springfield, IL. Regulatory filings show the credit union having $11.1 million in assets, as of June 30, 2017.

Members have $7.3 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $7.3 million. IEC's 1,701 members currently have $9.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, IEC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It works as a buffer against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, IEC racked up 18 out of a possible 30 points, beating out the national average of 15.26.

IEC appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 14.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, IEC scored 40 out of a possible 40 points, beating the national average of 38.15 points.

Troubled assets made up 1.00 percent of the credit union'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 earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

IEC scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.31.

One indication that IEC is running behind its peers in this area was its earnings ratio of -6.00 percent in our test, lower 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.