Safe and Sound

LIBRARY OF CONGRESS

WASHINGTON, DC
5
Star Rating
WASHINGTON, DC-based LIBRARY OF CONGRESS is an NCUA-insured credit union founded in 1935. As of June 30, 2017, the credit union had assets of $240.6 million.

Thanks to the work of 23 full-time employees, the credit union has amassed loans and leases worth $143.2 million. Its 9,734 members currently have $202.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, LIBRARY OF CONGRESS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, LIBRARY OF CONGRESS scored 20 out of a possible 30 points, beating out the national average of 15.26.

LIBRARY OF CONGRESS's capitalization ratio of 15.00 percent in our test was above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

This test's purpose is to try to understand 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 unpaid mortgages.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

LIBRARY OF CONGRESS scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

Troubled assets made up 3.00 percent of LIBRARY OF CONGRESS's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

LIBRARY OF CONGRESS outperformed the average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 8.00 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.