Safe and Sound

ACME CONTINENTAL

Riverdale, IL
5
Star Rating
Riverdale, IL-based ACME CONTINENTAL is an NCUA-insured credit union started in 1937. The credit union holds $44.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $18.8 million on deposit tended by 11 full-time employees. With that footprint, the credit union has amassed loans and leases worth $18.8 million. Its 6,389 members currently have $35.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ACME CONTINENTAL 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 score 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 fortitude, capital is important. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

ACME CONTINENTAL did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 28 out of a possible 30 points.

ACME CONTINENTAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 28.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets could eventually force a credit union to use capital to cover losses, diminishing its buffer 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 failure in the future.

ACME CONTINENTAL scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

A below-average ratio of problem assets of 0.00 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 making money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

ACME CONTINENTAL scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

ACME CONTINENTAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.