Safe and Sound

COMMUNITY

CHICAGO, IL
2
Star Rating
COMMUNITY is an NCUA-insured credit union started in 1951 and currently headquartered in CHICAGO, IL. The credit union has $364,118 in assets, according to December 31, 2017, regulatory filings.

COMMUNITY's 234 members currently have $321,443 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $52,013.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

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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 useful. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

COMMUNITY scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 14 out of a possible 30 points.

COMMUNITY's capitalization ratio of 14.00 percent in our test was below 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 try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

Having a large number of these types of assets means a credit union could eventually have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

COMMUNITY finished below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 points .

COMMUNITY's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

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

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