Safe and Sound

HARVARD COMMUNITY

HARVARD, IL
4
Star Rating
Founded in 1956, HARVARD COMMUNITY is an NCUA-insured credit union based in HARVARD, IL. The credit union has $14.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $7.6 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $7.6 million. HARVARD COMMUNITY's 2,824 members currently have $12.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HARVARD COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is important. When it comes to safety and soundness, more capital is better.

HARVARD COMMUNITY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

HARVARD COMMUNITY's capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, suggesting that it could be less resilient in a crisis 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 past-due loans.

A credit union with large numbers of these kinds of assets may eventually have to use capital to absorb 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

HARVARD COMMUNITY fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

HARVARD COMMUNITY's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, HARVARD COMMUNITY scored 6 out of a possible 30, below the national average of 10.11.

HARVARD COMMUNITY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.