Safe and Sound

U S #1364

MERRILLVILLE, IN
5
Star Rating
Started in 1936, U S #1364 is an NCUA-insured credit union headquartered in MERRILLVILLE, IN. Regulatory filings show the credit union having $121.0 million in assets, as of December 31, 2017.

Thanks to the work of 27 full-time employees, the credit union holds loans and leases worth $75.5 million. U S #1364's 10,350 members currently have $111.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U S #1364 exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, U S #1364 received a score of 10 out of a possible 30 points, below the national average of 15.65.

U S #1364 appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

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 problem assets, such as past-due mortgages.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, U S #1364 scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, U S #1364 scored 20 out of a possible 30, exceeding the national average of 10.11.

U S #1364 had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming 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.