Safe and Sound

ICI AMERICA

New Castle, DE
3
Star Rating
ICI AMERICA is a New Castle, DE-based, NCUA-insured credit union founded in 1973. The credit union holds assets of $2.6 million, according to June 30, 2017, regulatory filings.

The credit union holds loans and leases worth $976,440. ICI AMERICA's 501 members currently have $2.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ICI AMERICA 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 faired on the three important criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is important. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ICI AMERICA received a score of 12 out of a possible 30 points, below the national average of 15.26.

ICI AMERICA appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets means a credit union could eventually have to use capital to absorb losses, reducing its buffer of equity. 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 depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, ICI AMERICA scored 40 out of a possible 40 points, above the national average of 38.15 points.

ICI AMERICA's ratio of problem assets was 7.00 percent in our test, the same as the national average.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

ICI AMERICA underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One indication that ICI AMERICA is underperforming its peers in this area was its earnings ratio of -10.00 percent in our test, below 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.