Safe and Sound

CTA-74TH STREET DEPOT

Chicago, IL
4
Star Rating
CTA-74TH STREET DEPOT is an NCUA-insured credit union started in 1939 and currently based in Chicago, IL. The credit union has assets of $8.8 million, according to December 31, 2017, regulatory filings.

Its 679 members currently have $6.8 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $3.2 million.

Overall, Bankrate believes that, as of December 31, 2017, CTA-74TH STREET DEPOT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is better.

CTA-74TH STREET DEPOT achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

CTA-74TH STREET DEPOT appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having lots of these kinds of assets means a credit union may eventually have to use capital to cover losses, decreasing its buffer of equity. 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, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, CTA-74TH STREET DEPOT scored 40 out of a possible 40 points, above the national average of 38.09 points.

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 affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, CTA-74TH STREET DEPOT scored 0 out of a possible 30, falling short of the national average of 10.11.

One indication that CTA-74TH STREET DEPOT is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.