Safe and Sound

PUBLIC SERVICE EDWARDSPT PL E

Linton, IN
4
Star Rating
PUBLIC SERVICE EDWARDSPT PL E is an NCUA-insured credit union started in 1958 and currently headquartered in Linton, IN. The credit union holds assets of $1.8 million, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $939,891. Its 315 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUBLIC SERVICE EDWARDSPT PL E exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is useful. It acts as a bulwark against losses and provides protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

PUBLIC SERVICE EDWARDSPT PL E fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

PUBLIC SERVICE EDWARDSPT PL E had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually have 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 no longer earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

PUBLIC SERVICE EDWARDSPT PL E beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent 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 safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

PUBLIC SERVICE EDWARDSPT PL E scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One sign that PUBLIC SERVICE EDWARDSPT PL E is outperforming 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.