Safe and Sound

PONTIAC DWIGHT PRISON EMPLOYS

PONTIAC, IL
4
Star Rating
Founded in 1962, PONTIAC DWIGHT PRISON EMPLOYS is an NCUA-insured credit union headquartered in PONTIAC, IL. Regulatory filings show the credit union having $5.7 million in assets, as of December 31, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $2.4 million. Its 1,083 members currently have $4.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PONTIAC DWIGHT PRISON EMPLOYS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key 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 affords protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is valuable. When looking at safety and soundness, the more capital, the better.

PONTIAC DWIGHT PRISON EMPLOYS did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

PONTIAC DWIGHT PRISON EMPLOYS had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

PONTIAC DWIGHT PRISON EMPLOYS beat out the national average of 38.09 on Bankrate's test of asset quality, 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 earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

PONTIAC DWIGHT PRISON EMPLOYS scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that PONTIAC DWIGHT PRISON EMPLOYS is outperforming 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.