Safe and Sound

PENNINGTON MUNICIPAL & COUNTY EMPLO

THIEF RIVER FAL, MN
4
Star Rating
PENNINGTON MUNICIPAL & COUNTY EMPLO is an NCUA-insured credit union started in 1958 and currently headquartered in THIEF RIVER FAL, MN. Regulatory filings show the credit union having $1.6 million in assets, as of June 30, 2017.

The credit union has amassed loans and leases worth $951,061. PENNINGTON MUNICIPAL & COUNTY EMPLO's 424 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PENNINGTON MUNICIPAL & COUNTY EMPLO 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 major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial strength, capital is important. When looking at safety and soundness, the more capital, the better.

PENNINGTON MUNICIPAL & COUNTY EMPLO fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 14 out of a possible 30 points.

PENNINGTON MUNICIPAL & COUNTY EMPLO had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

PENNINGTON MUNICIPAL & COUNTY EMPLO scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

PENNINGTON MUNICIPAL & COUNTY EMPLO scored 2 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

One indication that PENNINGTON MUNICIPAL & COUNTY EMPLO is performing behind its peers in this area was its earnings ratio of 0.00 percent in our test, worse 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.