Safe and Sound

DEKALB COUNTY

DEKALB, IL
3
Star Rating
DEKALB, IL-based DEKALB COUNTY is an NCUA-insured credit union started in 1952. The credit union holds $6.0 million in assets, according to June 30, 2017, regulatory filings.

With 3 full-time employees, the credit union has amassed loans and leases worth $3.2 million. DEKALB COUNTY's 903 members currently have $5.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DEKALB COUNTY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key 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 bulwark against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

DEKALB COUNTY received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.26.

DEKALB COUNTY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a failure in the future.

DEKALB COUNTY did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

DEKALB COUNTY fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

DEKALB COUNTY had an earnings ratio of -3.00 percent in our test, worse than the average for all credit unions, a sign that it's running behind 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.