Safe and Sound

LIBRARY OF CONGRESS

WASHINGTON, DC
5
Star Rating
WASHINGTON, DC-based LIBRARY OF CONGRESS is an NCUA-insured credit union started in 1935. Regulatory filings show the credit union having assets of $241.3 million, as of December 31, 2017.

Thanks to the efforts of 24 full-time employees, the credit union holds loans and leases worth $142.6 million. Its 9,720 members currently have $202.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LIBRARY OF CONGRESS 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 important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial strength, capital is essential. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, LIBRARY OF CONGRESS achieved a score of 22 out of a possible 30 points, exceeding the national average of 15.65.

LIBRARY OF CONGRESS's capitalization ratio of 22.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually have to use capital to cover losses, shrinking its buffer 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, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, LIBRARY OF CONGRESS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-average ratio of problem 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 earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, LIBRARY OF CONGRESS scored 16 out of a possible 30, beating the national average of 10.11.

One sign that LIBRARY OF CONGRESS is outperforming 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.