Safe and Sound

ST. PAUL

SAINT PAUL, MN
5
Star Rating
SAINT PAUL, MN-based ST. PAUL is an NCUA-insured credit union founded in 1953. The credit union holds assets of $164.7 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 25 full-time employees, the credit union holds loans and leases worth $122.6 million. Its 11,519 members currently have $143.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ST. PAUL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

ST. PAUL scored 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.26.

ST. PAUL's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to absorb losses, shrinking 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 interest for the credit union, diminishing earnings and elevating the risk of a future failure.

ST. PAUL scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.15.

A below-average ratio of problem assets of 1.00 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 earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

ST. PAUL beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

ST. PAUL had an earnings ratio of 8.00 percent in our test, better than the average for all credit unions, a sign that it's beating its peers in this area.








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.