Safe and Sound

LOYOLA UNIVERSITY EMPLOYEES

MAYWOOD, IL
4
Star Rating
MAYWOOD, IL-based LOYOLA UNIVERSITY EMPLOYEES is an NCUA-insured credit union founded in 1979. The credit union has assets of $47.0 million, according to December 31, 2017, regulatory filings.

With 6 full-time employees, the credit union has amassed loans and leases worth $7.2 million. LOYOLA UNIVERSITY EMPLOYEES's 5,338 members currently have $41.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOYOLA UNIVERSITY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade 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 during times of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When looking at safety and soundness, more capital is better.

LOYOLA UNIVERSITY EMPLOYEES received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

LOYOLA UNIVERSITY EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets suggests a credit union could eventually have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

LOYOLA UNIVERSITY EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

A below-average ratio of problem 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 ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

LOYOLA UNIVERSITY EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

LOYOLA UNIVERSITY EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than 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.