Safe and Sound

OAK LAWN MUNICIPAL EMPLOYEES

OAK LAWN, IL
4
Star Rating
OAK LAWN, IL-based OAK LAWN MUNICIPAL EMPLOYEES is an NCUA-insured credit union started in 1962. The credit union has assets of $4.6 million, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $1.5 million. Its 881 members currently have $4.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OAK LAWN MUNICIPAL EMPLOYEES exhibited a good condition, earning 4 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 evaluate 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 experiencing financial instability. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

OAK LAWN MUNICIPAL EMPLOYEES received a score of 12 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

OAK LAWN MUNICIPAL EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, shrinking 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 interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

OAK LAWN MUNICIPAL EMPLOYEES exceeded 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 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 has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

OAK LAWN MUNICIPAL EMPLOYEES scored 10 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

One indication that OAK LAWN MUNICIPAL EMPLOYEES 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.