Safe and Sound

NOTRE DAME

Notre Dame, IN
4
Star Rating
Notre Dame, IN-based NOTRE DAME is an NCUA-insured credit union founded in 1983. As of December 31, 2017, the credit union held assets of $566.8 million.

Thanks to the efforts of 174 full-time employees, the credit union has amassed loans and leases worth $475.9 million. NOTRE DAME's 56,487 members currently have $451.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NOTRE DAME exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's 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?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a buffer against losses and provides protection for members during times of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

NOTRE DAME fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 6 out of a possible 30 points.

NOTRE DAME had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, an indication 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 reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, cutting down on 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 money, resulting in diminished earnings and potentially more risk of a failure in the future.

NOTRE DAME finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of NOTRE DAME'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 profitability affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

NOTRE DAME received above-average marks on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

NOTRE DAME had an earnings ratio of 0.00 percent in our test, above 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.