Safe and Sound

MEMBERS CHOICE

Peoria, IL
4
Star Rating
Founded in 1935, MEMBERS CHOICE is an NCUA-insured credit union headquartered in Peoria, IL. As of December 31, 2017, the credit union had assets of $125.4 million.

Members have $66.7 million on deposit tended by 26 full-time employees. With that footprint, the credit union has amassed loans and leases worth $66.7 million. Its 13,587 members currently have $105.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS CHOICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, MEMBERS CHOICE achieved a score of 20 out of a possible 30 points, better than the national average of 15.65.

MEMBERS CHOICE appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually be required to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a failure in the future.

MEMBERS CHOICE exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

MEMBERS CHOICE fell short of the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that MEMBERS CHOICE 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.