Safe and Sound

WAUKEGAN MUNICIPAL EMPLOYEES

WAUKEGAN, IL
4
Star Rating
Started in 1937, WAUKEGAN MUNICIPAL EMPLOYEES is an NCUA-insured credit union headquartered in WAUKEGAN, IL. As of December 31, 2017, the credit union held assets of $1.1 million.

The credit union holds loans and leases worth $987,232. WAUKEGAN MUNICIPAL EMPLOYEES's 277 members currently have $913,417 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WAUKEGAN MUNICIPAL EMPLOYEES 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It works as a buffer against losses and provides protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, WAUKEGAN MUNICIPAL EMPLOYEES scored 20 out of a possible 30 points, above the national average of 15.65.

WAUKEGAN MUNICIPAL EMPLOYEES's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets could eventually require a credit union to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, WAUKEGAN MUNICIPAL EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, WAUKEGAN MUNICIPAL EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is doing better than 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.