Safe and Sound

IRON COUNTY COMMUNITY

HURLEY, WI
4
Star Rating
Started in 1950, IRON COUNTY COMMUNITY is an NCUA-insured credit union based in HURLEY, WI. The credit union holds assets of $24.9 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 7 full-time employees, the credit union has amassed loans and leases worth $17.2 million. Its 3,434 members currently have $21.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IRON COUNTY COMMUNITY 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 important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

IRON COUNTY COMMUNITY racked up 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

IRON COUNTY COMMUNITY's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover losses, cutting down on its buffer of equity. 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 failure in the future.

IRON COUNTY COMMUNITY scored 32 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below 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. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

IRON COUNTY COMMUNITY outperformed the average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One indication that IRON COUNTY COMMUNITY 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.