Safe and Sound

ARCHER HEIGHTS

CHICAGO, IL
3
Star Rating
ARCHER HEIGHTS is an NCUA-insured credit union started in 1965 and currently headquartered in CHICAGO, IL. Regulatory filings show the credit union having $16.9 million in assets, as of December 31, 2017.

Thanks to the work of 7 full-time employees, the credit union holds loans and leases worth $8.4 million. ARCHER HEIGHTS's 2,506 members currently have $14.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARCHER HEIGHTS exhibited a generally satisfactory condition, earning 3 out of 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. Therefore, a credit union's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

ARCHER HEIGHTS scored below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

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

Asset Quality Score

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

Having a large number of these types of assets may eventually require a credit union to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

ARCHER HEIGHTS scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

ARCHER HEIGHTS fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that ARCHER HEIGHTS is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.