Safe and Sound

SCHOOL DISTRICTS 162/163 EMPLOYEES

Park Forest, IL
4
Star Rating
Founded in 1959, SCHOOL DISTRICTS 162/163 EMPLOYEES is an NCUA-insured credit union headquartered in Park Forest, IL. Regulatory filings show the credit union having $1.8 million in assets, as of December 31, 2017.

SCHOOL DISTRICTS 162/163 EMPLOYEES's 357 members currently have $1.4 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $272,402.

Overall, Bankrate believes that, as of December 31, 2017, SCHOOL DISTRICTS 162/163 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 key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during times of financial instability for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

SCHOOL DISTRICTS 162/163 EMPLOYEES scored 30 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

SCHOOL DISTRICTS 162/163 EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets suggests a credit union may eventually have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SCHOOL DISTRICTS 162/163 EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

SCHOOL DISTRICTS 162/163 EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability 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, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, SCHOOL DISTRICTS 162/163 EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

One indication that SCHOOL DISTRICTS 162/163 EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.