Safe and Sound

DIVERSIFIED GENERAL

LOGANSPORT, IN
4
Star Rating
Founded in 1966, DIVERSIFIED GENERAL is an NCUA-insured credit union headquartered in LOGANSPORT, IN. As of December 31, 2017, the credit union had assets of $9.1 million.

Thanks to the efforts of 5 full-time employees, the credit union holds loans and leases worth $6.0 million. Its 3,382 members currently have $8.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DIVERSIFIED GENERAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did 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 is a valuable measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

DIVERSIFIED GENERAL received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

DIVERSIFIED GENERAL had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, a sign that it's less 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 problem assets, such as unpaid loans.

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, DIVERSIFIED GENERAL scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below 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 safety and soundness. A credit union can retain its earnings, boosting its capital cushion, 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 have less ability to do those things.

On Bankrate's test of earnings, DIVERSIFIED GENERAL scored 12 out of a possible 30, above the national average of 10.11.

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