Safe and Sound

HEIGHTS AUTO WORKERS

Chicago Heights, IL
5
Star Rating
Chicago Heights, IL-based HEIGHTS AUTO WORKERS is an NCUA-insured credit union founded in 1961. As of December 31, 2017, the credit union had assets of $35.5 million.

Thanks to the work of 9 full-time employees, the credit union currently holds loans and leases worth $5.9 million. Its 6,595 members currently have $29.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEIGHTS AUTO WORKERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a key measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

HEIGHTS AUTO WORKERS achieved a score of 26 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

HEIGHTS AUTO WORKERS appears to be stronger than its peers, with a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, HEIGHTS AUTO WORKERS scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

HEIGHTS AUTO WORKERS fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign that HEIGHTS AUTO WORKERS is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.