Safe and Sound

DAIRYLAND POWER

LA CROSSE, WI
5
Star Rating
DAIRYLAND POWER is an NCUA-insured credit union founded in 1952 and currently based in LA CROSSE, WI. Regulatory filings show the credit union having $14.4 million in assets, as of December 31, 2017.

Members have $12.9 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $12.9 million. DAIRYLAND POWER's 1,582 members currently have $11.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DAIRYLAND POWER 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 major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial resilience. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

DAIRYLAND POWER scored 28 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

DAIRYLAND POWER appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a future failure.

DAIRYLAND POWER scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

DAIRYLAND POWER's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

DAIRYLAND POWER beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One sign that DAIRYLAND POWER is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.