Safe and Sound

INDEPENDENT

ANDERSON, IN
2
Star Rating
INDEPENDENT is an ANDERSON, IN-based, NCUA-insured credit union started in 1971. The credit union has assets of $68.0 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 22 full-time employees, the credit union holds loans and leases worth $43.7 million. INDEPENDENT's 7,129 members currently have $62.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDEPENDENT exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important 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 a key measurement of an institution's financial resilience. It acts as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. From a safety and soundness perspective, more capital is better.

INDEPENDENT finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 6 out of a possible 30 points.

INDEPENDENT's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, cutting down on its equity cushion. 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, diminishing earnings and elevating the chances of a failure in the future.

INDEPENDENT fell below the national average of 38.09 on Bankrate's test of asset quality, 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 superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects 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 better prepared to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, INDEPENDENT scored 0 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.