2 credit unions in area downgraded

2 credit unions in area downgraded

Two area credit unions were downgraded in BauerFinancial's latest ratings, based on regulatory data from Dec. 31.

Danville Consolidated Credit Union was downgraded from 3-star ("adequate") to 2-star ("problematic").

Also downgraded was Lauhoff Employees Credit Union in Danville, which dropped from 5-star ("superior") to 4-star ("excellent").

The other 19 area credit unions rated by BauerFinancial retained their ratings from the quarter that ended Sept. 30.

Jeri Hanson of Danville Consolidated Credit Union said she was unaware of the BauerFinancial rating and couldn't comment on the downgrade.

But she said Danville Consolidated has been rated as safe and sound by state regulators for many years.

Hanson said the confidential "CAMEL" rating that regulators assign to Danville Consolidated has not declined. The CAMEL system is used to evaluate a credit union's capital, asset quality, management, earnings and liability/asset management.

She added that all deposits at Danville Consolidated are insured by the National Credit Union Administration.

One credit union that appeared in the previous BauerFinancial ratings — Community Healthcare Credit Union in Urbana — merged last October with Rantoul-based Community Plus Federal Credit Union and is no longer included on the list.

Seven other credit unions were not rated, either because they are too small or because they are insured privately, rather than by the National Credit Union Administration.

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.

Credit union ratings

Here are BauerFinancial's ratings for area credit unions based on Dec. 31 data:

5-star ("superior")

11 credit unions

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

4-star ("excellent")

Eight credit unions

Champaign County School Employees CU, Champaign; Clifford-Jacobs Employees CU, Champaign; Community Plus Federal CU, Rantoul; First Illinois CU, Danville; Lauhoff Employees CU, Danville; Quorum Federal CU, New York; University of Illinois Employees CU, Champaign; Urbana Municipal Employees CU, Urbana.

3-star ("adequate")

One credit union

Route 1 CU, Paris.

2-star ("problematic")

One credit union

Danville Consolidated CU, Danville.

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.

* Because either the credit union is insured privately or is too small to be rated.