Safe and Sound

ADVANTAGE ONE

Morrison, IL
NR
Star Rating
ADVANTAGE ONE is an NCUA-insured credit union founded in 1960 and currently based in Morrison, IL. As of December 31, 2017, the credit union had assets of $20.1 million.

Thanks to the work of 7 full-time employees, the credit union holds loans and leases worth $14.5 million. Its 2,875 members currently have $18.7 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a crucial measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, ADVANTAGE ONE received a score of 4 out of a possible 30 points, failing to reach the national average of 15.65.

ADVANTAGE ONE's capitalization ratio of 4.00 percent in our test was lower than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

Having lots of these types of assets means a credit union could have to use capital to absorb losses, cutting down on its cushion 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 diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, ADVANTAGE ONE scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

Troubled assets made up 0.00 percent of ADVANTAGE ONE's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

ADVANTAGE ONE fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

ADVANTAGE ONE had an earnings ratio of -1.00 percent in our test, above the average for all credit unions, suggesting 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.