Safe and Sound

INTERNAL REVENUE

NEW ORLEANS, LA
4
Star Rating
INTERNAL REVENUE is an NCUA-insured credit union started in 1937 and currently headquartered in NEW ORLEANS, LA. Regulatory filings show the credit union having $13.0 million in assets, as of December 31, 2017.

Members have $5.8 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $5.8 million. Its 1,568 members currently have $10.8 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is useful. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, more capital is better.

INTERNAL REVENUE scored 24 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

INTERNAL REVENUE's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union may have to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the risk of a failure in the future.

INTERNAL REVENUE scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

INTERNAL REVENUE scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

INTERNAL REVENUE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.