Safe and Sound

CREDIT UNION 1

Rantoul, IL
4
Star Rating
CREDIT UNION 1 is an NCUA-insured credit union founded in 1958 and currently headquartered in Rantoul, IL. As of December 31, 2017, the credit union had assets of $826.3 million.

Members have $452.4 million on deposit tended by 295 full-time employees. With that footprint, the credit union holds loans and leases worth $452.4 million. CREDIT UNION 1's 103,618 members currently have $743.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION 1 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

CREDIT UNION 1 finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 10 out of a possible 30 points.

CREDIT UNION 1 appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets could eventually require a credit union 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 money, decreasing earnings and increasing the chances of a future failure.

CREDIT UNION 1 scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

A below-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 earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

CREDIT UNION 1 scored 12 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.