Safe and Sound

WESTERN INDIANA CREDIT UNION

Sullivan, IN
4
Star Rating
Founded in 1932, WESTERN INDIANA CREDIT UNION is an NCUA-insured credit union headquartered in Sullivan, IN. As of December 31, 2017, the credit union had assets of $26.5 million.

With 8 full-time employees, the credit union currently holds loans and leases worth $21.1 million. WESTERN INDIANA CREDIT UNION's 2,259 members currently have $22.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WESTERN INDIANA CREDIT UNION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It works as a bulwark against losses and provides protection for members during times of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

WESTERN INDIANA CREDIT UNION scored 20 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

WESTERN INDIANA CREDIT UNION's capitalization ratio of 20.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

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.

Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, WESTERN INDIANA CREDIT UNION scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

WESTERN INDIANA CREDIT UNION received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

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, 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.