Safe and Sound

GENERATIONS

LA PORTE, IN
3
Star Rating
LA PORTE, IN-based GENERATIONS is an NCUA-insured credit union founded in 1978. As of December 31, 2017, the credit union had assets of $10.4 million.

Thanks to the efforts of 4 full-time employees, the credit union has amassed loans and leases worth $3.6 million. GENERATIONS's 1,500 members currently have $9.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GENERATIONS exhibited a generally satisfactory condition, earning 3 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 American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

GENERATIONS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

GENERATIONS had a capitalization ratio of 8.00 percent in our test, lower than 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 try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and increasing the risk of a future failure.

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

Troubled assets made up 0.00 percent of GENERATIONS's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, GENERATIONS scored 4 out of a possible 30, lower than the national average of 10.11.

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