Safe and Sound

GALE

Galesburg, IL
3
Star Rating
GALE is a Galesburg, IL-based, NCUA-insured credit union that opened its doors in 1947. The credit union has $26.4 million in assets, according to December 31, 2017, regulatory filings.

Members have $12.4 million on deposit tended by 9 full-time employees. With that footprint, the credit union currently holds loans and leases worth $12.4 million. GALE's 4,344 members currently have $22.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GALE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of economic instability for the credit union. It follows then that an institution's level of capital is a key measurement of its financial strength. When looking at safety and soundness, more capital is better.

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

GALE had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

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

A lower-than-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 earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

GALE fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that GALE is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.