Safe and Sound

UNIFIED HOMEOWNERS OF ILLINOIS

CHICAGO, IL
5
Star Rating
CHICAGO, IL-based UNIFIED HOMEOWNERS OF ILLINOIS is an NCUA-insured credit union started in 2006. The credit union holds assets of $309,657, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $180,029. Its 261 members currently have $239,106 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIFIED HOMEOWNERS OF ILLINOIS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, UNIFIED HOMEOWNERS OF ILLINOIS achieved a score of 16 out of a possible 30 points, better than the national average of 15.65.

UNIFIED HOMEOWNERS OF ILLINOIS had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

UNIFIED HOMEOWNERS OF ILLINOIS did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

UNIFIED HOMEOWNERS OF ILLINOIS's ratio of troubled assets was 0.00 percent in our test, below 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 has an effect on its long-term survivability. Earnings can 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. However, credit unions that are losing money are less able to do those things.

UNIFIED HOMEOWNERS OF ILLINOIS scored 20 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.