Safe and Sound

MINNESOTA CATHOLIC

Little Canada, MN
4
Star Rating
MINNESOTA CATHOLIC is a Little Canada, MN-based, NCUA-insured credit union dating back to 1946. As of December 31, 2017, the credit union held assets of $32.5 million.

Members have $17.3 million on deposit tended by 7 full-time employees. With that footprint, the credit union holds loans and leases worth $17.3 million. Its 2,515 members currently have $29.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MINNESOTA CATHOLIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is important. It acts as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

MINNESOTA CATHOLIC received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

MINNESOTA CATHOLIC's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb 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, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, MINNESOTA CATHOLIC scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-average ratio of troubled 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 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, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

MINNESOTA CATHOLIC scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that MINNESOTA CATHOLIC is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.