Safe and Sound

HARVESTER FINANCIAL

INDIANAPOLIS, IN
3
Star Rating
HARVESTER FINANCIAL is an INDIANAPOLIS, IN-based, NCUA-insured credit union started in 1954. As of December 31, 2017, the credit union had assets of $52.2 million.

Members have $27.4 million on deposit tended by 20 full-time employees. With that footprint, the credit union has amassed loans and leases worth $27.4 million. Its 5,678 members currently have $47.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HARVESTER FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. When looking at safety and soundness, more capital is preferred.

HARVESTER FINANCIAL fell short of the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

HARVESTER FINANCIAL had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

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

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

A lower-than-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

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

HARVESTER FINANCIAL fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

HARVESTER FINANCIAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.