Safe and Sound

MT ZION INDIANAPOLIS

Indianapolis, IN
2
Star Rating
Indianapolis, IN-based MT ZION INDIANAPOLIS is an NCUA-insured credit union started in 1963. The credit union holds assets of $698,292, according to December 31, 2017, regulatory filings.

MT ZION INDIANAPOLIS's 347 members currently have $494,969 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $466,705.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is crucial. From a safety and soundness perspective, the more capital, the better.

MT ZION INDIANAPOLIS received a score of 2 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

MT ZION INDIANAPOLIS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 2.00 percent in our test, lower than 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 troubled assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, MT ZION INDIANAPOLIS scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

MT ZION INDIANAPOLIS fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of -1.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.