Safe and Sound

MWRD EMPLOYEES

CHICAGO, IL
4
Star Rating
CHICAGO, IL-based MWRD EMPLOYEES is an NCUA-insured credit union founded in 1953. The credit union holds $33.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $15.6 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $15.6 million. MWRD EMPLOYEES's 2,327 members currently have $28.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MWRD EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is essential. When it comes to safety and soundness, the higher the capital, the better.

MWRD EMPLOYEES did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

MWRD EMPLOYEES had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets means a credit union could have to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, MWRD EMPLOYEES scored 6 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.