Safe and Sound

SOUTH SHOP

Blue Island, IL
4
Star Rating
Started in 1938, SOUTH SHOP is an NCUA-insured credit union based in Blue Island, IL. Regulatory filings show the credit union having assets of $12.8 million, as of December 31, 2017.

With 3 full-time employees, the credit union holds loans and leases worth $4.5 million. Its 1,178 members currently have $10.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH SHOP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It works as a bulwark against losses and as protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the more capital, the better.

SOUTH SHOP did better than the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 22 out of a possible 30 points.

SOUTH SHOP's capitalization ratio of 22.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

SOUTH SHOP scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Troubled assets made up 0.00 percent of SOUTH SHOP's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SOUTH SHOP scored 4 out of a possible 30, less than the national average of 10.11.

One indication that SOUTH SHOP is outperforming 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.