Safe and Sound

DUBOIS-PIKE

JASPER, IN
4
Star Rating
JASPER, IN-based DUBOIS-PIKE is an NCUA-insured credit union founded in 1971. The credit union holds assets of $29.8 million, according to December 31, 2017, regulatory filings.

Members have $18.9 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $18.9 million. DUBOIS-PIKE's 2,184 members currently have $26.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DUBOIS-PIKE 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 major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial resilience. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, DUBOIS-PIKE received a score of 8 out of a possible 30 points, less than the national average of 15.65.

DUBOIS-PIKE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

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

A below-average ratio of troubled 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 earning money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

DUBOIS-PIKE scored 10 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

DUBOIS-PIKE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.