Safe and Sound

BALL STATE

MUNCIE, IN
2
Star Rating
Started in 1956, BALL STATE is an NCUA-insured credit union headquartered in MUNCIE, IN. Regulatory filings show the credit union having $94.9 million in assets, as of December 31, 2017.

With 30 full-time employees, the credit union has amassed loans and leases worth $65.7 million. Its 12,769 members currently have $87.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BALL STATE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired 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 acts as a cushion against losses and provides protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is key. When looking at safety and soundness, more capital is preferred.

BALL STATE came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

BALL STATE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having large numbers of these types of assets suggests a credit union could have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, BALL STATE scored 28 out of a possible 40 points, below the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

BALL STATE scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

BALL STATE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.