Safe and Sound

MEMBERS SOURCE

MERRILLVILLE, IN
4
Star Rating
Founded in 1935, MEMBERS SOURCE is an NCUA-insured credit union based in MERRILLVILLE, IN. As of December 31, 2017, the credit union held assets of $76.5 million.

Members have $28.1 million on deposit tended by 18 full-time employees. With that footprint, the credit union has amassed loans and leases worth $28.1 million. MEMBERS SOURCE's 6,987 members currently have $67.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS SOURCE 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 key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It works as a cushion against losses and provides protection for members during periods of financial instability for the credit union. When looking at safety and soundness, the more capital, the better.

MEMBERS SOURCE fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 14 out of a possible 30 points.

MEMBERS SOURCE had a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union may have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, MEMBERS SOURCE scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

MEMBERS SOURCE's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

MEMBERS SOURCE did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One indication that MEMBERS SOURCE 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.