Safe and Sound

ELCA

Chicago, IL
5
Star Rating
ELCA is a Chicago, IL-based, NCUA-insured credit union dating back to 2015. The credit union has assets of $6.6 million, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union holds loans and leases worth $3.8 million. Its 1,104 members currently have $3.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELCA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial strength. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

ELCA exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

ELCA's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a future failure.

ELCA exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

ELCA outperformed the average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.