1 area credit union gets 3rd-quarter downgrade

1 area credit union gets 3rd-quarter downgrade

One area credit union was downgraded in the latest ratings from the BauerFinancial rating service.

The Champaign County School Employees Credit Union was downgraded from 5-star ("superior") to 4-star ("excellent") based on regulatory data from Sept. 30, 2011.

The other 21 area credit unions rated by BauerFinancial retained the same ratings they had from the quarter that ended June 30.

Of those credit unions, 11 received superior ratings, six got excellent ratings and four received adequate ratings.

Seven other credit unions were not rated, six because they are too small and the seventh — Credit Union 1 in Rantoul — because it is insured privately, rather than by the National Credit Union Administration.

No area credit unions received BauerFinancial's three lowest ratings of zero stars ("lowest"), 1-star ("troubled") or 2-star ("problematic").

Of the 29 credit unions in the area, 18 were either profitable or broke even during the quarter that ended Sept. 30.

The other 11 showed losses for the quarter. Only seven showed losses for the first nine months of 2011.

Four area credit unions had nonperforming assets that exceeded 2 per- cent of total assets, as of Sept. 30.

Those included: Credit Union 1, at 4.69 percent; Danville Consolidated, at 2.99 percent; Urbana Postal, at 2.27 percent; and Route 1, 2.06 percent.

All four were profitable for the first nine months of the year. Danville Consolidated had a net loss of $5,000 in the most recent quarter.

New York-based Quorum Federal was the largest of area credit unions, with $689 million in assets as of Sept. 30. Credit Union 1 was second-largest, with assets of $644 million.

Another large credit union — the University of Illinois Employees Credit Union — had $258 million in assets. The UI Employees Credit Union had a $142,000 loss for the most recent quarter, but $370,000 in net income for the first nine months of the year.

BauerFinancial bases its ratings on capital ratios, profitability trends, levels of delinquent loans, charge-offs and repossessed assets, liquidity, historical data and supervisory actions by regulatory agencies.

Here are BauerFinancial's ratings for area credit unions based on Sept. 30, 2011, data:

5-star ('superior')

11 credit unions

Area Educational CU, Mattoon; Blaw-Knox CU, Mattoon; Carle Employees Federal CU, Urbana; Central Illinois CU, Champaign; Education Personnel Federal CU, Danville; Landmark CU, Danville; Lauhoff Employees CU, Danville; MidWest America FCU, Fort Wayne, Ind.; New Horizon CU, Danville; Tee-Pak CU, Danville; Urbana Municipal Employees CU, Urbana.

4-star ('excellent')

Seven credit unions

Champaign County School Employees CU, Champaign; Champaign Municipal Employees CU, Champaign; Clifford-Jacobs Employees CU, Champaign; First Illinois CU, Danville; Paris Hi-Way CU, Paris; Quorum Federal CU, New York; University of Illinois Employees CU, Champaign.

3-star ('adequate')

Four credit unions

Community Healthcare CU, Urbana; Community Plus Federal CU, Rantoul; Danville Consolidated CU, Danville; Route 1 CU, Paris.

Not rated*

Seven credit unions

Canaan CU, Urbana; Champaign Postal CU, Champaign; Credit Union 1, Rantoul; Danville Bell CU, Danville; McMillen Master CU, Gibson City; MEA CU, Monticello; Urbana Postal CU, Urbana.

* — Either because the credit union is insured privately, rather than by the National Credit Union Administration, or because it is too small to be rated, having less than $1.5 million in assets.

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