Safe and Sound

ST. THOMAS EMPLOYEE

SAINT PAUL, MN
4
Star Rating
SAINT PAUL, MN-based ST. THOMAS EMPLOYEE is an NCUA-insured credit union started in 1949. The credit union holds $4.0 million in assets, according to December 31, 2017, regulatory filings.

ST. THOMAS EMPLOYEE's 1,180 members currently have $3.6 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.9 million.

Overall, Bankrate believes that, as of December 31, 2017, ST. THOMAS EMPLOYEE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial resilience, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, ST. THOMAS EMPLOYEE received a score of 12 out of a possible 30 points, coming in below the national average of 15.65.

ST. THOMAS EMPLOYEE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

ST. THOMAS EMPLOYEE scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, ST. THOMAS EMPLOYEE scored 8 out of a possible 30, coming in below the national average of 10.11.

ST. THOMAS EMPLOYEE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.