Safe and Sound

INDIANHEAD

SPOONER, WI
4
Star Rating
Founded in 1961, INDIANHEAD is an NCUA-insured credit union headquartered in SPOONER, WI. The credit union has $57.7 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 21 full-time employees, the credit union holds loans and leases worth $29.2 million. INDIANHEAD's 7,454 members currently have $50.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDIANHEAD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

INDIANHEAD received a score of 12 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

INDIANHEAD's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to absorb losses, shrinking its buffer 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, diminishing earnings and elevating the chances of a failure in the future.

INDIANHEAD exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

INDIANHEAD's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

INDIANHEAD received below-average marks on Bankrate's earnings test, achieving a score of 10 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, an indication 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.