Safe and Sound

EDUCATION PERSONNEL

DANVILLE, IL
4
Star Rating
Founded in 1937, EDUCATION PERSONNEL is an NCUA-insured credit union headquartered in DANVILLE, IL. The credit union holds assets of $50.8 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 8 full-time employees, the credit union holds loans and leases worth $20.7 million. Its 4,030 members currently have $44.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EDUCATION PERSONNEL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, EDUCATION PERSONNEL achieved a score of 16 out of a possible 30 points, beating out the national average of 15.65.

EDUCATION PERSONNEL's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets could eventually require a credit union to use capital to absorb losses, reducing its equity buffer. 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 depressed earnings and potentially more risk of a failure in the future.

EDUCATION PERSONNEL scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, EDUCATION PERSONNEL scored 12 out of a possible 30, beating out 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, higher 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.