Safe and Sound

GRAND HERITAGE

LAPORTE, IN
3
Star Rating
GRAND HERITAGE is an NCUA-insured credit union founded in 1955 and currently based in LAPORTE, IN. The credit union holds $15.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $5.7 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $5.7 million. GRAND HERITAGE's 2,316 members currently have $14.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GRAND HERITAGE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, GRAND HERITAGE received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

GRAND HERITAGE had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets means a credit union may eventually have to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

GRAND HERITAGE scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, GRAND HERITAGE scored 6 out of a possible 30, less than the national average of 10.11.

One indication that GRAND HERITAGE is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.