Safe and Sound

PROCESSORS-INDUSTRIAL COMMUNITY

GRANITE CITY, IL
2
Star Rating
PROCESSORS-INDUSTRIAL COMMUNITY is a GRANITE CITY, IL-based, NCUA-insured credit union dating back to 1938. As of December 31, 2017, the credit union had assets of $11.5 million.

Thanks to the work of 5 full-time employees, the credit union holds loans and leases worth $5.0 million. Its 2,114 members currently have $10.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PROCESSORS-INDUSTRIAL COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, PROCESSORS-INDUSTRIAL COMMUNITY received a score of 8 out of a possible 30 points, falling short of the national average of 15.65.

PROCESSORS-INDUSTRIAL COMMUNITY had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing 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 money, resulting in lower earnings and potentially more risk of a future failure.

PROCESSORS-INDUSTRIAL COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

Troubled assets made up 0.00 percent of PROCESSORS-INDUSTRIAL COMMUNITY's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, PROCESSORS-INDUSTRIAL COMMUNITY scored 0 out of a possible 30, falling short of the national average of 10.11.

PROCESSORS-INDUSTRIAL COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.