Safe and Sound

CENTRAL ILLINOIS

champaign, IL
4
Star Rating
CENTRAL ILLINOIS is a champaign, IL-based, NCUA-insured credit union started in 1948. Regulatory filings show the credit union having assets of $17.4 million, as of December 31, 2017.

With 3 full-time employees, the credit union has amassed loans and leases worth $8.1 million. Its 3,472 members currently have $15.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL ILLINOIS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate 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 resilience, capital is important. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, CENTRAL ILLINOIS received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

CENTRAL ILLINOIS's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

CENTRAL ILLINOIS scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, CENTRAL ILLINOIS scored 14 out of a possible 30, beating out the national average of 10.11.

One sign that CENTRAL ILLINOIS is running ahead of 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.