Safe and Sound

INDIANA UNIVERSITY

BLOOMINGTON, IN
5
Star Rating
Started in 1956, INDIANA UNIVERSITY is an NCUA-insured credit union based in BLOOMINGTON, IN. As of December 31, 2017, the credit union held assets of $944.0 million.

Members have $703.6 million on deposit tended by 199 full-time employees. With that footprint, the credit union holds loans and leases worth $703.6 million. INDIANA UNIVERSITY's 63,751 members currently have $806.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDIANA UNIVERSITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a valuable measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

INDIANA UNIVERSITY racked up 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

INDIANA UNIVERSITY had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with lots of these types of assets could eventually have to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

INDIANA UNIVERSITY scored 40 out of a possible 40 points on Bankrate's asset quality test, better 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 greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, INDIANA UNIVERSITY scored 18 out of a possible 30, above the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.