Safe and Sound

ANCO COMMUNITY

LA SALLE, IL
2
Star Rating
ANCO COMMUNITY is a LA SALLE, IL-based, NCUA-insured credit union dating back to 1955. Regulatory filings show the credit union having $12.3 million in assets, as of December 31, 2017.

Members have $5.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.9 million. ANCO COMMUNITY's 1,274 members currently have $10.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ANCO COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ANCO COMMUNITY achieved a score of 16 out of a possible 30 points, exceeding the national average of 15.65.

ANCO COMMUNITY's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its equity cushion. 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.

ANCO COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, ANCO COMMUNITY scored 0 out of a possible 30, failing to reach the national average of 10.11.

ANCO COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign 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.