Safe and Sound

POWER CO-OP EMPLOYEES

Humboldt, IA
5
Star Rating
Started in 1956, POWER CO-OP EMPLOYEES is an NCUA-insured credit union headquartered in Humboldt, IA. As of December 31, 2017, the credit union had assets of $34.3 million.

Members have $15.2 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $15.2 million. Its 1,906 members currently have $28.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POWER CO-OP EMPLOYEES exhibited a superior condition, earning a full 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 evaluate American credit unions on safety and soundness.

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 provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

POWER CO-OP EMPLOYEES did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 26 out of a possible 30 points.

POWER CO-OP EMPLOYEES had a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, POWER CO-OP EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.

POWER CO-OP EMPLOYEES's ratio of troubled 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

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

POWER CO-OP EMPLOYEES exceeded the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

POWER CO-OP EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.