Safe and Sound

DECATUR STANOLIND

Decatur, IL
5
Star Rating
DECATUR STANOLIND is a Decatur, IL-based, NCUA-insured credit union dating back to 1937. As of June 30, 2017, the credit union held assets of $3.0 million.

The credit union holds loans and leases worth $525,674. Its 445 members currently have $2.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DECATUR STANOLIND exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is essential. It works as a buffer against losses and affords protection for members during times of economic instability for the credit union. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, DECATUR STANOLIND achieved a score of 30 out of a possible 30 points, better than the national average of 15.26.

DECATUR STANOLIND appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate 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 mortgages.

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, DECATUR STANOLIND scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

DECATUR STANOLIND's ratio of troubled assets was 2.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

DECATUR STANOLIND scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

DECATUR STANOLIND had an earnings ratio of -17.00 percent in our test, below the average for all credit unions, suggesting that it's underperforming 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.