Safe and Sound

BLUFFTON MOTOR WORKS/FRANKLIN ELECT

BLUFFTON, IN
4
Star Rating
Founded in 1952, BLUFFTON MOTOR WORKS/FRANKLIN ELECT is an NCUA-insured credit union headquartered in BLUFFTON, IN. The credit union holds $1.3 million in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $216,967. BLUFFTON MOTOR WORKS/FRANKLIN ELECT's 282 members currently have $1.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BLUFFTON MOTOR WORKS/FRANKLIN ELECT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When it comes to safety and soundness, the more capital, the better.

BLUFFTON MOTOR WORKS/FRANKLIN ELECT achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

BLUFFTON MOTOR WORKS/FRANKLIN ELECT had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, BLUFFTON MOTOR WORKS/FRANKLIN ELECT scored 40 out of a possible 40 points, above the national average of 38.09 points.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

BLUFFTON MOTOR WORKS/FRANKLIN ELECT scored 0 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

BLUFFTON MOTOR WORKS/FRANKLIN ELECT had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.