Safe and Sound

INGERSOLL-RAND

Athens, PA
5
Star Rating
INGERSOLL-RAND is an NCUA-insured credit union started in 1961 and currently headquartered in Athens, PA. As of December 31, 2017, the credit union held assets of $57.3 million.

Members have $19.0 million on deposit tended by 14 full-time employees. With that footprint, the credit union has amassed loans and leases worth $19.0 million. INGERSOLL-RAND's 5,136 members currently have $45.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INGERSOLL-RAND exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It acts as a cushion against losses and affords protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

INGERSOLL-RAND racked up 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

INGERSOLL-RAND appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test is intended 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 unpaid mortgages.

A credit union with large numbers of these types of assets may eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the chances of a future failure.

INGERSOLL-RAND fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

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

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

INGERSOLL-RAND scored 4 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that INGERSOLL-RAND is doing better than 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.