Safe and Sound

UNIVERSITY OF ILLINOIS COMMUNITY

CHAMPAIGN, IL
3
Star Rating
Started in 1932, UNIVERSITY OF ILLINOIS COMMUNITY is an NCUA-insured credit union headquartered in CHAMPAIGN, IL. As of December 31, 2017, the credit union held assets of $328.7 million.

Thanks to the work of 107 full-time employees, the credit union currently holds loans and leases worth $270.5 million. Its 45,826 members currently have $289.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIVERSITY OF ILLINOIS COMMUNITY exhibited a generally satisfactory condition, earning 3 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

UNIVERSITY OF ILLINOIS COMMUNITY finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 8 out of a possible 30 points.

UNIVERSITY OF ILLINOIS COMMUNITY appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

UNIVERSITY OF ILLINOIS COMMUNITY scored 32 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

A below-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 making money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

UNIVERSITY OF ILLINOIS COMMUNITY received above-average marks on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

UNIVERSITY OF ILLINOIS COMMUNITY had an earnings ratio of 0.00 percent in our test, better than 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.