Safe and Sound

SELECT EMPLOYEES

STERLING, IL
3
Star Rating
STERLING, IL-based SELECT EMPLOYEES is an NCUA-insured credit union started in 1957. As of December 31, 2017, the credit union held assets of $42.4 million.

With 14 full-time employees, the credit union has amassed loans and leases worth $26.5 million. Its 4,862 members currently have $38.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SELECT EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

SELECT EMPLOYEES received a score of 6 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

SELECT EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union may eventually have to use capital to cover 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 lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SELECT EMPLOYEES scored 36 out of a possible 40 points, less than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

SELECT EMPLOYEES scored 10 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that SELECT EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.