Safe and Sound

PRIMETRUST FINANCIAL

MUNCIE, IN
3
Star Rating
Founded in 1935, PRIMETRUST FINANCIAL is an NCUA-insured credit union headquartered in MUNCIE, IN. Regulatory filings show the credit union having $160.3 million in assets, as of June 30, 2017.

Members have $107.9 million on deposit tended by 62 full-time employees. With that footprint, the credit union currently holds loans and leases worth $107.9 million. PRIMETRUST FINANCIAL's 17,404 members currently have $140.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PRIMETRUST FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, PRIMETRUST FINANCIAL received a score of 8 out of a possible 30 points, less than the national average of 15.26.

PRIMETRUST FINANCIAL appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having a large number of these kinds of assets means a credit union could eventually have to use capital to cover losses, shrinking its equity buffer. 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 depressed earnings and potentially more risk of a future failure.

PRIMETRUST FINANCIAL beat out the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 5.00 percent of PRIMETRUST FINANCIAL's total assets in our test, below 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 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 times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, PRIMETRUST FINANCIAL scored 0 out of a possible 30, less than the national average of 10.31.

PRIMETRUST FINANCIAL had an earnings ratio of -1.00 percent in our test, below the average for all credit unions, suggesting that it's running behind 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.