Safe and Sound

GOVERNMENTAL EMPLOYEES

LA CROSSE, WI
3
Star Rating
LA CROSSE, WI-based GOVERNMENTAL EMPLOYEES is an NCUA-insured credit union founded in 1931. The credit union has assets of $69.0 million, according to December 31, 2017, regulatory filings.

With 16 full-time employees, the credit union holds loans and leases worth $58.4 million. Its 6,145 members currently have $62.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GOVERNMENTAL EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is preferred.

GOVERNMENTAL EMPLOYEES received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

GOVERNMENTAL EMPLOYEES's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, 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 types of assets may eventually be forced to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, GOVERNMENTAL EMPLOYEES scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 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 making money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

GOVERNMENTAL EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that the credit union is running ahead of 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.