Safe and Sound

DUPACO COMMUNITY

Dubuque, IA
5
Star Rating
Started in 1948, DUPACO COMMUNITY is an NCUA-insured credit union based in Dubuque, IA. The credit union has $1.57 billion in assets, according to June 30, 2017, regulatory filings.

With 378 full-time employees, the credit union currently holds loans and leases worth $930.3 million. Its 100,156 members currently have $1.26 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DUPACO COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, DUPACO COMMUNITY achieved a score of 20 out of a possible 30 points, exceeding the national average of 15.26.

DUPACO COMMUNITY appears to be stronger than its peers, with a capitalization ratio of 15.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test 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 could eventually be required to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, DUPACO COMMUNITY scored 40 out of a possible 40 points, above the national average of 38.15 points.

A lower-than-average ratio of troubled assets of 6.00 percent in our test was potentially indicative 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 safety and soundness. 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. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, DUPACO COMMUNITY scored 18 out of a possible 30, better than the national average of 10.31.

One sign that DUPACO COMMUNITY is beating its peers in this area was its earnings ratio of 10.00 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.