Safe and Sound

CANALS & TRAILS

LOCKPORT, IL
4
Star Rating
Lockport, IL-based CANALS & TRAILS is an NCUA-insured credit union started in 1959. As of December 31, 2017, the credit union had assets of $22.8 million.

Members have $10.1 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $10.1 million. Its 2,923 members currently have $20.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CANALS & TRAILS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It acts as a cushion against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

CANALS & TRAILS received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

CANALS & TRAILS had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

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 problem assets, such as unpaid mortgages.

Having lots of these types of assets could eventually require a credit union to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a future failure.

CANALS & TRAILS scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent 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 long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, CANALS & TRAILS scored 10 out of a possible 30, coming in below the national average of 10.11.

One indication that CANALS & TRAILS is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.