Safe and Sound

EVANSVILLE

Evansville, IN
4
Star Rating
Evansville, IN-based EVANSVILLE is an NCUA-insured credit union founded in 1961. The credit union holds assets of $68.5 million, according to December 31, 2017, regulatory filings.

With 17 full-time employees, the credit union currently holds loans and leases worth $50.7 million. EVANSVILLE's 7,226 members currently have $58.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EVANSVILLE 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 evaluate U.S. credit unions.

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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 economic instability. It follows then that an institution's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

EVANSVILLE did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 16 out of a possible 30 points.

EVANSVILLE's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are 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.

EVANSVILLE exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem 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 has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

EVANSVILLE received below-average marks on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above 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.