Safe and Sound

CITIZENS EQUITY FIRST

Peoria, IL
5
Star Rating
CITIZENS EQUITY FIRST is an NCUA-insured credit union started in 1937 and currently headquartered in Peoria, IL. The credit union holds assets of $5.79 billion, according to June 30, 2017, regulatory filings.

Members have $4.13 billion on deposit tended by 846 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.13 billion. CITIZENS EQUITY FIRST's 325,442 members currently have $5.10 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CITIZENS EQUITY FIRST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as 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 key. When it comes to safety and soundness, the more capital, the better.

CITIZENS EQUITY FIRST fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, racking up 10 out of a possible 30 points.

CITIZENS EQUITY FIRST appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, diminishing 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 reduced earnings and potentially more risk of a future failure.

CITIZENS EQUITY FIRST beat out the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

CITIZENS EQUITY FIRST scored 20 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.31.

One indication that CITIZENS EQUITY FIRST is running ahead of its peers in this area was its earnings ratio of 11.00 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.