How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.
LOCAL GOVERNMENT did above-average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.
One indication that LOCAL GOVERNMENT is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.