Safe and Sound

GREAT LAKES

BANNOCKBURN, IL
3
Star Rating
GREAT LAKES is an NCUA-insured credit union founded in 1938 and currently headquartered in BANNOCKBURN, IL. Regulatory filings show the credit union having assets of $800.3 million, as of June 30, 2017.

With 219 full-time employees, the credit union has amassed loans and leases worth $603.3 million. GREAT LAKES's 85,179 members currently have $659.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GREAT LAKES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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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 struggling financially. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

GREAT LAKES fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, racking up 8 out of a possible 30 points.

GREAT LAKES's capitalization ratio of 9.00 percent in our test was below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, decreasing 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 future failure.

On Bankrate's asset quality test, GREAT LAKES scored 36 out of a possible 40 points, coming in below the national average of 38.15 points.

An above-average ratio of problem assets of 10.00 percent in our test was a potential area of concern for GREAT LAKES.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, GREAT LAKES scored 4 out of a possible 30, coming in below the national average of 10.31.

The credit union had an earnings ratio of 2.00 percent in our test, above the average for all credit unions, an indication 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.