Safe and Sound

NORMAL CITY EMPLOYEES

Normal, IL
3
Star Rating
NORMAL CITY EMPLOYEES is a Normal, IL-based, NCUA-insured credit union that opened its doors in 1962. The credit union has assets of $4.4 million, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $2.9 million. NORMAL CITY EMPLOYEES's 622 members currently have $4.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORMAL CITY EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure capital adequacy, NORMAL CITY EMPLOYEES received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

NORMAL CITY EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having large numbers of these types of assets means a credit union may eventually have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, NORMAL CITY EMPLOYEES scored 2 out of a possible 30, failing to reach the national average of 10.11.

NORMAL CITY EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.