How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.
MEMPHIS CITY EMPLOYEES scored 10 out of a possible 30 on Bankrate's earnings test, below 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, higher than the average for all credit unions.