Safe and Sound

NORTH SIDE COMMUNITY

Chicago, IL
1
Star Rating
NORTH SIDE COMMUNITY is a Chicago, IL-based, NCUA-insured credit union started in 1974. As of December 31, 2017, the credit union held assets of $9.1 million.

Members have $5.8 million on deposit tended by 8 full-time employees. With that footprint, the credit union holds loans and leases worth $5.8 million. NORTH SIDE COMMUNITY's 3,103 members currently have $8.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH SIDE COMMUNITY exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during times of economic instability for the credit union. It follows then that an institution's level of capital is a crucial measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

NORTH SIDE COMMUNITY fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 0 out of a possible 30 points.

Asset Quality Score

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

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

NORTH SIDE COMMUNITY scored 4 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

NORTH SIDE COMMUNITY's ratio of problem assets was 1.00 percent in our test, the same as the national average.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, NORTH SIDE COMMUNITY scored 0 out of a possible 30, falling short of 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, a sign 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.