Safe and Sound

TRADES & LABOR

ALBERT LEA, MN
5
Star Rating
TRADES & LABOR is an ALBERT LEA, MN-based, NCUA-insured credit union started in 1958. Regulatory filings show the credit union having $11.9 million in assets, as of December 31, 2017.

With 5 full-time employees, the credit union has amassed loans and leases worth $9.4 million. TRADES & LABOR's 2,301 members currently have $10.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRADES & LABOR exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It acts as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

TRADES & LABOR received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

TRADES & LABOR's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

TRADES & LABOR scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

TRADES & LABOR did above-average on Bankrate's earnings test, achieving a score of 24 out of a possible 30.

One indication that TRADES & LABOR is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.