A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.
IRS BUFFALO scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.
One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.