Safe and Sound

DEPARTMENT OF THE INTERIOR

Washington, DC
4
Star Rating
DEPARTMENT OF THE INTERIOR is an NCUA-insured credit union started in 1935 and currently based in Washington, DC. Regulatory filings show the credit union having assets of $185.6 million, as of December 31, 2017.

Members have $153.7 million on deposit tended by 36 full-time employees. With that footprint, the credit union holds loans and leases worth $153.7 million. DEPARTMENT OF THE INTERIOR's 13,744 members currently have $154.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DEPARTMENT OF THE INTERIOR exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is key. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, DEPARTMENT OF THE INTERIOR received a score of 12 out of a possible 30 points, failing to reach the national average of 15.65.

DEPARTMENT OF THE INTERIOR appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these kinds of assets may eventually have to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a future failure.

DEPARTMENT OF THE INTERIOR beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, DEPARTMENT OF THE INTERIOR scored 10 out of a possible 30, less than the national average of 10.11.

One indication that DEPARTMENT OF THE INTERIOR is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.