Safe and Sound

SHIPBUILDERS

MANITOWOC, WI
5
Star Rating
MANITOWOC, WI-based SHIPBUILDERS is an NCUA-insured credit union founded in 1938. Regulatory filings show the credit union having assets of $80.0 million, as of December 31, 2017.

With 30 full-time employees, the credit union has amassed loans and leases worth $62.3 million. SHIPBUILDERS's 9,746 members currently have $67.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHIPBUILDERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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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 works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SHIPBUILDERS scored 20 out of a possible 30 points, beating out the national average of 15.65.

SHIPBUILDERS had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, decreasing 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, resulting in reduced earnings and potentially more risk of a future failure.

SHIPBUILDERS exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

SHIPBUILDERS received above-average marks on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.