Safe and Sound

TOLNA CO OP

TOLNA, ND
4
Star Rating
TOLNA CO OP is an NCUA-insured credit union founded in 1940 and currently headquartered in TOLNA, ND. As of December 31, 2017, the credit union had assets of $1.2 million.

The credit union currently holds loans and leases worth $611,525. TOLNA CO OP's 219 members currently have $1.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOLNA CO OP 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 grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, TOLNA CO OP scored 26 out of a possible 30 points, exceeding the national average of 15.65.

TOLNA CO OP had a capitalization ratio of 26.00 percent in our test, above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets suggests a credit union could have to use capital to cover losses, decreasing its cushion 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 increasing the chances of a failure in the future.

TOLNA CO OP 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 below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, TOLNA CO OP scored 2 out of a possible 30, failing to reach the national average of 10.11.

One sign that TOLNA CO OP is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.