Safe and Sound

INDIANAPOLIS' NEWSPAPER

Indianapolis, IN
2
Star Rating
Started in 1961, INDIANAPOLIS' NEWSPAPER is an NCUA-insured credit union based in Indianapolis, IN. Regulatory filings show the credit union having assets of $7.7 million, as of December 31, 2017.

Members have $6.4 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $6.4 million. Its 1,226 members currently have $6.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDIANAPOLIS' NEWSPAPER exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial fortitude. It acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

INDIANAPOLIS' NEWSPAPER achieved a score of 16 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

INDIANAPOLIS' NEWSPAPER's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually be forced to use capital to cover losses, cutting down on 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, resulting in diminished earnings and potentially more risk of a future failure.

INDIANAPOLIS' NEWSPAPER scored 32 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

Troubled assets made up 0.00 percent of INDIANAPOLIS' NEWSPAPER's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

INDIANAPOLIS' NEWSPAPER scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that INDIANAPOLIS' NEWSPAPER is outperforming 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.