Safe and Sound

LOCAL 229 IBEW

YORK, PA
3
Star Rating
LOCAL 229 IBEW is an NCUA-insured credit union started in 1955 and currently headquartered in YORK, PA. As of December 31, 2017, the credit union had assets of $1.5 million.

The credit union holds loans and leases worth $897,499. LOCAL 229 IBEW's 494 members currently have $1.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOCAL 229 IBEW exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial fortitude. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the higher the capital, the better.

LOCAL 229 IBEW received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

LOCAL 229 IBEW's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

LOCAL 229 IBEW scored 28 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to 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, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

LOCAL 229 IBEW scored 12 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.11.

One sign that LOCAL 229 IBEW is beating 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.