A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.
FIRST NORTHERN fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.
The credit union had an earnings ratio of 3.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of its peers in this area.