Safe and Sound

NORTHRIDGE COMMUNITY

HOYT LAKES, MN
4
Star Rating
HOYT LAKES, MN-based NORTHRIDGE COMMUNITY is an NCUA-insured credit union started in 1957. Regulatory filings show the credit union having $41.3 million in assets, as of December 31, 2017.

Members have $29.9 million on deposit tended by 19 full-time employees. With that footprint, the credit union holds loans and leases worth $29.9 million. NORTHRIDGE COMMUNITY's 4,899 members currently have $35.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHRIDGE COMMUNITY 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

NORTHRIDGE COMMUNITY exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 18 out of a possible 30 points.

NORTHRIDGE COMMUNITY had a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate 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 past-due loans.

Having lots of these types of assets suggests a credit union could eventually have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

NORTHRIDGE COMMUNITY did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning 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 times of trouble. Conversely, losses reduce a credit union's ability to do those things.

NORTHRIDGE COMMUNITY fell behind the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

NORTHRIDGE COMMUNITY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.