Safe and Sound

PUBLIC SERVICE #3

Fort Wayne, IN
4
Star Rating
Fort Wayne, IN-based PUBLIC SERVICE #3 is an NCUA-insured credit union founded in 1932. Regulatory filings show the credit union having $52.4 million in assets, as of December 31, 2017.

Thanks to the efforts of 14 full-time employees, the credit union currently holds loans and leases worth $28.5 million. PUBLIC SERVICE #3's 4,886 members currently have $44.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUBLIC SERVICE #3 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is essential. When it comes to safety and soundness, more capital is preferred.

PUBLIC SERVICE #3 achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

PUBLIC SERVICE #3 appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets could eventually force a credit union 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 money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, PUBLIC SERVICE #3 scored 40 out of a possible 40 points, beating the national average of 38.09 points.

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

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, PUBLIC SERVICE #3 scored 8 out of a possible 30, less than the national average of 10.11.

One sign that PUBLIC SERVICE #3 is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.