THE INSTITUTION'S SCORE
Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an a credit union's financial stability, capital is important. From a safety and soundness perspective, the higher the capital, the better.
On our test to measure the adequacy of a credit union's capital, TORCH LAKE received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.
TORCH LAKE's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.