Safe and Sound

TRADESMEN COMMUNITY

Des Moines, IA
5
Star Rating
TRADESMEN COMMUNITY is an NCUA-insured credit union founded in 1954 and currently headquartered in Des Moines, IA. As of December 31, 2017, the credit union held assets of $55.2 million.

With 15 full-time employees, the credit union currently holds loans and leases worth $27.3 million. Its 5,510 members currently have $47.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRADESMEN COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is important. It acts as a cushion against losses and affords protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, TRADESMEN COMMUNITY scored 20 out of a possible 30 points, beating the national average of 15.65.

TRADESMEN COMMUNITY appears to be stronger than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets means a credit union could have to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a future failure.

TRADESMEN COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

A lower-than-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

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

TRADESMEN COMMUNITY outperformed the average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

TRADESMEN COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.