Safe and Sound

OPERATING ENGINEERS LOCAL #148

Granite City, IL
4
Star Rating
Started in 1943, OPERATING ENGINEERS LOCAL #148 is an NCUA-insured credit union based in Granite City, IL. Regulatory filings show the credit union having $16.8 million in assets, as of June 30, 2017.

Thanks to the efforts of 4 full-time employees, the credit union holds loans and leases worth $8.6 million. OPERATING ENGINEERS LOCAL #148's 1,613 members currently have $14.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, OPERATING ENGINEERS LOCAL #148 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate 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 affords protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

OPERATING ENGINEERS LOCAL #148 did better than the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, receiving a score of 24 out of a possible 30 points.

OPERATING ENGINEERS LOCAL #148 appears to be on more solid financial footing than its peers, with a capitalization ratio of 17.00 percent in our test, higher than the average for all credit unions.

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 lots of these types of assets could eventually be forced to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, OPERATING ENGINEERS LOCAL #148 scored 40 out of a possible 40 points, beating the national average of 38.15 points.

Troubled assets made up 6.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects 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. Credit unions that are losing money, however, are less able to do those things.

OPERATING ENGINEERS LOCAL #148 fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

OPERATING ENGINEERS LOCAL #148 had an earnings ratio of 0.00 percent in our test, worse than the average for all credit unions, a sign that it's running behind 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.