Safe and Sound

CENTRAL SOYA

DECATUR, IN
5
Star Rating
CENTRAL SOYA is an NCUA-insured credit union started in 1940 and currently headquartered in DECATUR, IN. Regulatory filings show the credit union having assets of $24.1 million, as of December 31, 2017.

Members have $5.4 million on deposit tended by 5 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.4 million. CENTRAL SOYA's 2,128 members currently have $19.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL SOYA exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It acts as a cushion against losses and as protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, more capital is preferred.

CENTRAL SOYA racked up 28 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

CENTRAL SOYA's capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects 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, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

CENTRAL SOYA fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

CENTRAL SOYA had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.