Safe and Sound

ADAMS COUNTY

Monroe, IN
5
Star Rating
Started in 1946, ADAMS COUNTY is an NCUA-insured credit union based in Monroe, IN. The credit union has $19.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $12.3 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $12.3 million. ADAMS COUNTY's 1,092 members currently have $15.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ADAMS COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is essential. When looking at safety and soundness, more capital is better.

ADAMS COUNTY beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 30 out of a possible 30 points.

ADAMS COUNTY appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, above 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 past-due mortgages.

A credit union with a large number of these types of assets may eventually be forced to use capital to cover losses, diminishing its equity cushion. 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 future failure.

ADAMS COUNTY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on 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, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

ADAMS COUNTY fell behind the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.