Safe and Sound

ADVANTAGEPLUS OF INDIANA

Terre Haute, IN
5
Star Rating
Founded in 1953, ADVANTAGEPLUS OF INDIANA is an NCUA-insured credit union based in Terre Haute, IN. As of December 31, 2017, the credit union held assets of $22.4 million.

Members have $17.6 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $17.6 million. ADVANTAGEPLUS OF INDIANA's 6,586 members currently have $18.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ADVANTAGEPLUS OF INDIANA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is useful. It acts as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, ADVANTAGEPLUS OF INDIANA achieved a score of 26 out of a possible 30 points, above the national average of 15.65.

ADVANTAGEPLUS OF INDIANA had a capitalization ratio of 26.00 percent in our test, above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with lots of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, ADVANTAGEPLUS OF INDIANA scored 40 out of a possible 40 points, beating the national average of 38.09 points.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

ADVANTAGEPLUS OF INDIANA scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One indication that ADVANTAGEPLUS OF INDIANA is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.