A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.
On Bankrate's earnings test, S.M.S.D. scored 8 out of a possible 30, below the national average of 10.11.
One sign that S.M.S.D. 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.