Safe and Sound

BEREAN

Chicago, IL
5
Star Rating
BEREAN is a Chicago, IL-based, NCUA-insured credit union founded in 1955. Regulatory filings show the credit union having $118,345 in assets, as of December 31, 2017.

The credit union holds loans and leases worth $11,419. Its 235 members currently have $96,573 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BEREAN exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, BEREAN racked up 28 out of a possible 30 points, above the national average of 15.65.

BEREAN's capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets means a credit union could have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, BEREAN scored 2 out of a possible 30, below the national average of 10.11.

BEREAN had an earnings ratio of 0.00 percent in our test, better 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.