Safe and Sound

TAYLORVILLE SCHOOL EMPLOYEES

Taylorville, IL
5
Star Rating
Taylorville, IL-based TAYLORVILLE SCHOOL EMPLOYEES is an NCUA-insured credit union started in 1955. Regulatory filings show the credit union having $1.7 million in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $799,044. Its 344 members currently have $1.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TAYLORVILLE SCHOOL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

TAYLORVILLE SCHOOL EMPLOYEES beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 30 out of a possible 30 points.

TAYLORVILLE SCHOOL EMPLOYEES had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

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 past-due mortgages.

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

TAYLORVILLE SCHOOL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, TAYLORVILLE SCHOOL EMPLOYEES scored 10 out of a possible 30, coming in below the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.