Safe and Sound

BLACKHAWK AREA

Savanna, IL
2
Star Rating
BLACKHAWK AREA is an NCUA-insured credit union founded in 1935 and currently headquartered in Savanna, IL. Regulatory filings show the credit union having assets of $33.8 million, as of December 31, 2017.

Members have $20.4 million on deposit tended by 13 full-time employees. With that footprint, the credit union has amassed loans and leases worth $20.4 million. BLACKHAWK AREA's 4,679 members currently have $31.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BLACKHAWK AREA exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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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 financial instability for the credit union. It follows then that an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

BLACKHAWK AREA scored below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 6 out of a possible 30 points.

BLACKHAWK AREA appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

Having lots of these types of assets means a credit union could eventually have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, BLACKHAWK AREA scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to 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, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, BLACKHAWK AREA scored 0 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's doing better than 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.