A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.
PICKENS scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 10.31.
One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 2.00 percent in our test, higher than the average for all credit unions.