Safe and Sound

MILLEDGEVILLE COMMUNITY

Milledgeville, IL
3
Star Rating
Milledgeville, IL-based MILLEDGEVILLE COMMUNITY is an NCUA-insured credit union started in 1957. Regulatory filings show the credit union having $4.4 million in assets, as of December 31, 2017.

The credit union has amassed loans and leases worth $1.6 million. MILLEDGEVILLE COMMUNITY's 731 members currently have $4.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MILLEDGEVILLE COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It acts as a cushion against losses and as protection for members during times of financial instability for the credit union. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, MILLEDGEVILLE COMMUNITY received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

MILLEDGEVILLE COMMUNITY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, reducing earnings and elevating the chances of a failure in the future.

MILLEDGEVILLE COMMUNITY did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

MILLEDGEVILLE COMMUNITY scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating 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.