Safe and Sound

ETHICON SUTURE

Chicago, IL
4
Star Rating
Founded in 1952, ETHICON SUTURE is an NCUA-insured credit union based in Chicago, IL. As of December 31, 2017, the credit union held assets of $1.1 million.

The credit union holds loans and leases worth $876,075. ETHICON SUTURE's 534 members currently have $1.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ETHICON SUTURE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is useful. It acts as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, ETHICON SUTURE received a score of 12 out of a possible 30 points, failing to reach the national average of 15.65.

ETHICON SUTURE had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to absorb losses, decreasing 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 lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, ETHICON SUTURE scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

ETHICON SUTURE scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach 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, above 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.