Safe and Sound

UNION BAPTIST CHURCH

FORT WAYNE, IN
3
Star Rating
UNION BAPTIST CHURCH is a FORT WAYNE, IN-based, NCUA-insured credit union dating back to 2006. Regulatory filings show the credit union having $142,054 in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $30,746. UNION BAPTIST CHURCH's 303 members currently have $114,579 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNION BAPTIST CHURCH exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, UNION BAPTIST CHURCH scored 16 out of a possible 30 points, exceeding the national average of 15.65.

UNION BAPTIST CHURCH had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, an indication that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

UNION BAPTIST CHURCH scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

UNION BAPTIST CHURCH's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, UNION BAPTIST CHURCH scored 0 out of a possible 30, falling short of the national average of 10.11.

One sign that the credit union is running ahead of 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.