Safe and Sound

TAZEWELL COUNTY GOVERNMENT EMP

Pekin, IL
4
Star Rating
TAZEWELL COUNTY GOVERNMENT EMP is a Pekin, IL-based, NCUA-insured credit union that opened its doors in 1954. As of December 31, 2017, the credit union held assets of $1.3 million.

TAZEWELL COUNTY GOVERNMENT EMP's 393 members currently have $1.1 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.1 million.

Overall, Bankrate believes that, as of December 31, 2017, TAZEWELL COUNTY GOVERNMENT EMP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It works as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, more capital is preferred.

TAZEWELL COUNTY GOVERNMENT EMP beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 18 out of a possible 30 points.

TAZEWELL COUNTY GOVERNMENT EMP appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

TAZEWELL COUNTY GOVERNMENT EMP exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, TAZEWELL COUNTY GOVERNMENT EMP scored 2 out of a possible 30, failing to reach the national average of 10.11.

TAZEWELL COUNTY GOVERNMENT EMP had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's running ahead of its peers in this area.

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.