Safe and Sound

INDUSTRIAL

LAFAYETTE, IN
3
Star Rating
LAFAYETTE, IN-based INDUSTRIAL is an NCUA-insured credit union founded in 1983. As of December 31, 2017, the credit union held assets of $185.6 million.

Thanks to the work of 95 full-time employees, the credit union currently holds loans and leases worth $110.3 million. INDUSTRIAL's 31,179 members currently have $165.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INDUSTRIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It works as a buffer against losses and as protection for members during times of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

INDUSTRIAL received a score of 12 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

INDUSTRIAL appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, below the average for all credit unions.

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 unpaid mortgages.

Having large numbers of these types of assets suggests a credit union could eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, INDUSTRIAL scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

A lower-than-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

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

INDUSTRIAL scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One indication that INDUSTRIAL is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.