Safe and Sound

STALEY

DECATUR, IL
4
Star Rating
DECATUR, IL-based STALEY is an NCUA-insured credit union founded in 1930. Regulatory filings show the credit union having assets of $135.2 million, as of December 31, 2017.

With 38 full-time employees, the credit union has amassed loans and leases worth $107.6 million. STALEY's 14,910 members currently have $120.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STALEY 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 major criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, more capital is preferred.

STALEY received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

STALEY's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.

STALEY finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

STALEY's ratio of troubled assets was 0.00 percent 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 making money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, STALEY scored 22 out of a possible 30, above the national average of 10.11.

One sign that STALEY is beating 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.