Safe and Sound

LAUHOFF EMPLOYEES

DANVILLE, IL
5
Star Rating
LAUHOFF EMPLOYEES is an NCUA-insured credit union started in 1948 and currently based in DANVILLE, IL. As of December 31, 2017, the credit union held assets of $5.6 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $3.2 million. Its 903 members currently have $4.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LAUHOFF EMPLOYEES 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 grade 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 bulwark against losses and provides protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, LAUHOFF EMPLOYEES racked up 26 out of a possible 30 points, exceeding the national average of 15.65.

LAUHOFF EMPLOYEES had a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these types of assets could eventually require a credit union to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, LAUHOFF EMPLOYEES scored 40 out of a possible 40 points, above 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 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, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

LAUHOFF EMPLOYEES scored 4 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

LAUHOFF EMPLOYEES 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.