Safe and Sound

IH CREDIT UNION, INC.

SPRINGFIELD, OH
4
Star Rating
IH CREDIT UNION, INC. is a SPRINGFIELD, OH-based, NCUA-insured credit union founded in 1934. As of December 31, 2017, the credit union had assets of $316.3 million.

Thanks to the work of 45 full-time employees, the credit union currently holds loans and leases worth $192.9 million. Its 22,358 members currently have $191.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IH CREDIT UNION, INC. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

IH CREDIT UNION, INC. exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 22 out of a possible 30 points.

IH CREDIT UNION, INC. appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 22.00 percent in our test, better 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 past-due loans.

Having lots of these types of assets could eventually force a credit union to use capital to cover losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, IH CREDIT UNION, INC. scored 40 out of a possible 40 points, above the national average of 38.09 points.

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

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

IH CREDIT UNION, INC. underperformed the 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, a sign that it's doing better than 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.