Safe and Sound

FOX VALLEY

Aurora, IL
2
Star Rating
FOX VALLEY is an Aurora, IL-based, NCUA-insured credit union started in 1937. The credit union holds $19.1 million in assets, according to December 31, 2017, regulatory filings.

With 7 full-time employees, the credit union holds loans and leases worth $7.8 million. Its 2,455 members currently have $16.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FOX VALLEY 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 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 strength, capital is valuable. It acts as a cushion against losses and as protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, FOX VALLEY scored 16 out of a possible 30 points, above the national average of 15.65.

FOX VALLEY had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these types of assets suggests a credit union may have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

FOX VALLEY scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

A below-average ratio of troubled 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 profitability has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

FOX VALLEY did below-average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

FOX VALLEY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.