Safe and Sound

ELGIN MENTAL HEALTH CENTER

ELGIN, IL
4
Star Rating
ELGIN MENTAL HEALTH CENTER is an ELGIN, IL-based, NCUA-insured credit union started in 1955. As of December 31, 2017, the credit union had assets of $5.4 million.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $1.3 million. ELGIN MENTAL HEALTH CENTER's 854 members currently have $4.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ELGIN MENTAL HEALTH CENTER exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did 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 acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is valuable. When looking at safety and soundness, the more capital, the better.

ELGIN MENTAL HEALTH CENTER racked up 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

ELGIN MENTAL HEALTH CENTER had a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually have to use capital to cover losses, diminishing 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 diminished earnings and potentially more risk of a future failure.

ELGIN MENTAL HEALTH CENTER scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

ELGIN MENTAL HEALTH CENTER received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

ELGIN MENTAL HEALTH CENTER had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.