Safe and Sound

HOBART IND SCHOOL EMPLOYEES

HOBART, IN
3
Star Rating
HOBART IND SCHOOL EMPLOYEES is a HOBART, IN-based, NCUA-insured credit union started in 1952. As of December 31, 2017, the credit union held assets of $2.1 million.

Its 492 members currently have $1.9 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.3 million.

Overall, Bankrate believes that, as of December 31, 2017, HOBART IND SCHOOL EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, more capital is preferred.

HOBART IND SCHOOL EMPLOYEES came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 10 out of a possible 30 points.

HOBART IND SCHOOL EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

HOBART IND SCHOOL EMPLOYEES scored 32 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

HOBART IND SCHOOL EMPLOYEES did below-average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.