Safe and Sound

HAYNES COMMUNITY

KOKOMO, IN
4
Star Rating
KOKOMO, IN-based HAYNES COMMUNITY is an NCUA-insured credit union founded in 1948. Regulatory filings show the credit union having assets of $26.5 million, as of December 31, 2017.

With 9 full-time employees, the credit union currently holds loans and leases worth $21.7 million. HAYNES COMMUNITY's 3,636 members currently have $23.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAYNES COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial strength. It acts as a buffer against losses and provides protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, HAYNES COMMUNITY received a score of 14 out of a possible 30 points, less than the national average of 15.65.

HAYNES COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these types of assets could eventually be required 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, pushing down earnings and increasing the risk of a future failure.

HAYNES COMMUNITY fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 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

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, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

HAYNES COMMUNITY did above-average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.