Safe and Sound

RED LAKE CO OP

RED LAKE FALLS, MN
4
Star Rating
Started in 1949, RED LAKE CO OP is an NCUA-insured credit union headquartered in RED LAKE FALLS, MN. As of December 31, 2017, the credit union had assets of $6.5 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $4.6 million. Its 1,492 members currently have $5.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RED LAKE CO OP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is preferred.

RED LAKE CO OP fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

RED LAKE CO OP had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having lots of these kinds of assets could eventually require a credit union to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, RED LAKE CO OP scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

RED LAKE CO OP exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.