Safe and Sound

COMMUNITY SPIRIT CREDIT UNION

Lawrenceburg, IN
4
Star Rating
COMMUNITY SPIRIT CREDIT UNION is a Lawrenceburg, IN-based, NCUA-insured credit union that opened its doors in 1937. Regulatory filings show the credit union having assets of $13.8 million, as of December 31, 2017.

With 6 full-time employees, the credit union currently holds loans and leases worth $6.8 million. Its 2,130 members currently have $11.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY SPIRIT CREDIT UNION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, COMMUNITY SPIRIT CREDIT UNION achieved a score of 24 out of a possible 30 points, beating out the national average of 15.65.

COMMUNITY SPIRIT CREDIT UNION's capitalization ratio of 24.00 percent in our test was above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having lots of these types of assets suggests a credit union may have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

COMMUNITY SPIRIT CREDIT UNION scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, COMMUNITY SPIRIT CREDIT UNION scored 2 out of a possible 30, falling short of the national average of 10.11.

COMMUNITY SPIRIT CREDIT UNION had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's running ahead of 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.