Safe and Sound

ILA 28

Pasadena, TX
5
Star Rating
ILA 28 is an NCUA-insured credit union started in 1970 and currently based in Pasadena, TX. The credit union holds $6.5 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $2.4 million. ILA 28's 711 members currently have $4.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ILA 28 exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is useful. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, ILA 28 scored 30 out of a possible 30 points, better than the national average of 15.26.

ILA 28 appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 24.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

ILA 28 scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

A lower-than-average ratio of problem assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

ILA 28 outperformed the average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

ILA 28 had an earnings ratio of 6.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.