Safe and Sound

FIRST ILLINOIS

DANVILLE, IL
2
Star Rating
DANVILLE, IL-based FIRST ILLINOIS is an NCUA-insured credit union started in 1951. The credit union has $50.2 million in assets, according to June 30, 2017, regulatory filings.

Members have $27.9 million on deposit tended by 20 full-time employees. With that footprint, the credit union holds loans and leases worth $27.9 million. Its 8,636 members currently have $47.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FIRST ILLINOIS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the more capital, the better.

FIRST ILLINOIS received a score of 0 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.26.

FIRST ILLINOIS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 4.00 percent in our test, below the average for all credit unions.

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 troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets suggests a credit union could have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, FIRST ILLINOIS scored 40 out of a possible 40 points, beating the national average of 38.15 points.

A below-average ratio of troubled assets of 4.00 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 affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

FIRST ILLINOIS scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

One sign that FIRST ILLINOIS is running behind its peers in this area was its earnings ratio of -141.00 percent in our test, less 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.