Safe and Sound

BUSINESS AND INDUSTRIAL

Columbus, IN
4
Star Rating
BUSINESS AND INDUSTRIAL is an NCUA-insured credit union started in 1960 and currently based in Columbus, IN. Regulatory filings show the credit union having $36.1 million in assets, as of December 31, 2017.

With 12 full-time employees, the credit union currently holds loans and leases worth $12.7 million. Its 5,260 members currently have $31.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BUSINESS AND INDUSTRIAL 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 major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial stability, capital is key. From a safety and soundness perspective, more capital is preferred.

BUSINESS AND INDUSTRIAL achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

BUSINESS AND INDUSTRIAL's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

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 problem assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

BUSINESS AND INDUSTRIAL beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and 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 safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, BUSINESS AND INDUSTRIAL scored 0 out of a possible 30, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.