Safe and Sound

MINNESOTA POWER EMPLOYEES

DULUTH, MN
4
Star Rating
MINNESOTA POWER EMPLOYEES is an NCUA-insured credit union founded in 1933 and currently based in DULUTH, MN. As of December 31, 2017, the credit union held assets of $93.9 million.

Thanks to the work of 24 full-time employees, the credit union holds loans and leases worth $57.2 million. Its 6,239 members currently have $77.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MINNESOTA POWER EMPLOYEES 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 evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, more capital is better.

MINNESOTA POWER EMPLOYEES beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 24 out of a possible 30 points.

MINNESOTA POWER EMPLOYEES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, MINNESOTA POWER EMPLOYEES scored 40 out of a possible 40 points, beating 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 has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

MINNESOTA POWER EMPLOYEES scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that MINNESOTA POWER EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.