Safe and Sound

CITY AND COUNTY EMPLOYEES

ALBERT LEA, MN
4
Star Rating
CITY AND COUNTY EMPLOYEES is an NCUA-insured credit union founded in 1950 and currently headquartered in ALBERT LEA, MN. As of December 31, 2017, the credit union had assets of $18.4 million.

Members have $5.3 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $5.3 million. CITY AND COUNTY EMPLOYEES's 1,871 members currently have $15.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CITY AND COUNTY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

CITY AND COUNTY EMPLOYEES did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 16 out of a possible 30 points.

CITY AND COUNTY EMPLOYEES had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

This test's purpose is to estimate 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 past-due mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, CITY AND COUNTY EMPLOYEES scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Troubled assets made up 0.00 percent of CITY AND COUNTY EMPLOYEES's total assets in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

CITY AND COUNTY EMPLOYEES scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 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.