Safe and Sound

PRAIRIELAND

NORMAL, IL
4
Star Rating
PRAIRIELAND is a NORMAL, IL-based, NCUA-insured credit union started in 1937. Regulatory filings show the credit union having $73.4 million in assets, as of June 30, 2017.

With 21 full-time employees, the credit union currently holds loans and leases worth $60.0 million. PRAIRIELAND's 7,082 members currently have $53.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PRAIRIELAND exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate 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. It follows then that when it comes to measuring an a credit union's financial resilience, capital is important. When looking at safety and soundness, the higher the capital, the better.

PRAIRIELAND scored 16 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

PRAIRIELAND appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually be required to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

PRAIRIELAND fell below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

The credit union's ratio of troubled assets was 7.00 percent in our test, identical to the national average.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

PRAIRIELAND scored 10 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.31.

The credit union had an earnings ratio of 5.00 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.