Safe and Sound

HIBBING COOPERATIVE

Hibbing, MN
4
Star Rating
HIBBING COOPERATIVE is a Hibbing, MN-based, NCUA-insured credit union dating back to 1938. As of December 31, 2017, the credit union held assets of $76.5 million.

Members have $18.8 million on deposit tended by 11 full-time employees. With that footprint, the credit union holds loans and leases worth $18.8 million. Its 8,408 members currently have $67.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HIBBING COOPERATIVE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial strength. It acts as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the more capital, the better.

HIBBING COOPERATIVE received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

HIBBING COOPERATIVE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, cutting down on its equity cushion. 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, pushing down earnings and increasing the chances of a failure in the future.

HIBBING COOPERATIVE beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of HIBBING COOPERATIVE's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

HIBBING COOPERATIVE received below-average marks on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.