Safe and Sound

CONSUMERS COOPERATIVE

Gurnee, IL
4
Star Rating
Started in 1930, CONSUMERS COOPERATIVE is an NCUA-insured credit union based in Gurnee, IL. The credit union has assets of $1.24 billion, according to December 31, 2017, regulatory filings.

With 324 full-time employees, the credit union currently holds loans and leases worth $849.9 million. Its 109,798 members currently have $1.10 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONSUMERS COOPERATIVE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, CONSUMERS COOPERATIVE received a score of 6 out of a possible 30 points, failing to reach the national average of 15.65.

CONSUMERS COOPERATIVE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended 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 problem assets, such as past-due loans.

Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

CONSUMERS COOPERATIVE exceeded 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 CONSUMERS COOPERATIVE's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, CONSUMERS COOPERATIVE scored 16 out of a possible 30, beating the national average of 10.11.

One sign that the credit union is doing better than 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.