Safe and Sound

INDIANA UNIVERSITY

BLOOMINGTON, IN
5
Star Rating
Founded in 1956, INDIANA UNIVERSITY is an NCUA-insured credit union based in BLOOMINGTON, IN. Regulatory filings show the credit union having assets of $940.2 million, as of June 30, 2017.

Thanks to the work of 201 full-time employees, the credit union currently holds loans and leases worth $664.1 million. Its 62,685 members currently have $808.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, INDIANA UNIVERSITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial strength, capital is key. When looking at safety and soundness, the more capital, the better.

INDIANA UNIVERSITY exceeded the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, achieving a score of 16 out of a possible 30 points.

INDIANA UNIVERSITY had a capitalization ratio of 13.00 percent in our test, the same as the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

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

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

On Bankrate's asset quality test, INDIANA UNIVERSITY scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A below-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, INDIANA UNIVERSITY scored 18 out of a possible 30, better than the national average of 10.31.

INDIANA UNIVERSITY had an earnings ratio of 8.00 percent in our test, better than the average for all credit unions, a sign 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.