Safe and Sound

NORTHERN PACIFIC DULUTH

Duluth, MN
4
Star Rating
NORTHERN PACIFIC DULUTH is an NCUA-insured credit union started in 1936 and currently headquartered in Duluth, MN. As of December 31, 2017, the credit union held assets of $1.9 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $1.5 million. Its 1,098 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHERN PACIFIC DULUTH exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. From a safety and soundness perspective, more capital is better.

NORTHERN PACIFIC DULUTH scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 30 out of a possible 30 points.

NORTHERN PACIFIC DULUTH appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is 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 problem assets, such as unpaid mortgages.

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.

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

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

NORTHERN PACIFIC DULUTH did below-average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's outperforming its peers in this area.

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.