Safe and Sound

BLAW-KNOX

Mattoon, IL
5
Star Rating
Founded in 1957, BLAW-KNOX is an NCUA-insured credit union headquartered in Mattoon, IL. Regulatory filings show the credit union having assets of $10.3 million, as of December 31, 2017.

With 4 full-time employees, the credit union has amassed loans and leases worth $6.1 million. Its 2,039 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BLAW-KNOX exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial fortitude. It works as a cushion against losses and as protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, more capital is preferred.

BLAW-KNOX exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 24 out of a possible 30 points.

BLAW-KNOX had a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually have to use capital to absorb losses, diminishing its cushion 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 lower earnings and potentially more risk of a failure in the future.

BLAW-KNOX scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

BLAW-KNOX fell short of the national average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

BLAW-KNOX had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.