Safe and Sound

CENTRAL CREDIT UNION OF ILLINOIS

BELLWOOD, IL
4
Star Rating
Founded in 1936, CENTRAL CREDIT UNION OF ILLINOIS is an NCUA-insured credit union headquartered in BELLWOOD, IL. The credit union holds assets of $92.5 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 26 full-time employees, the credit union holds loans and leases worth $64.8 million. CENTRAL CREDIT UNION OF ILLINOIS's 12,756 members currently have $82.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL CREDIT UNION OF ILLINOIS exhibited a good condition, earning 4 out of 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is useful. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the more capital, the better.

CENTRAL CREDIT UNION OF ILLINOIS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

CENTRAL CREDIT UNION OF ILLINOIS's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

CENTRAL CREDIT UNION OF ILLINOIS beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets 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 profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

CENTRAL CREDIT UNION OF ILLINOIS scored 8 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One indication that CENTRAL CREDIT UNION OF ILLINOIS is beating 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.