Safe and Sound

SOUTH BEND TRANSIT

SOUTH BEND, IN
4
Star Rating
SOUTH BEND TRANSIT is a SOUTH BEND, IN-based, NCUA-insured credit union dating back to 1941. As of December 31, 2017, the credit union held assets of $4.3 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $2.4 million. Its 441 members currently have $3.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH BEND TRANSIT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of financial trouble for the credit union. It follows then that an institution's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, SOUTH BEND TRANSIT scored 30 out of a possible 30 points, beating the national average of 15.65.

SOUTH BEND TRANSIT's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets may eventually be forced to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a future failure.

SOUTH BEND TRANSIT scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

SOUTH BEND TRANSIT scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that SOUTH BEND TRANSIT is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.