Safe and Sound

WISCONSIN LATVIAN, INC.

MILWAUKEE, WI
3
Star Rating
Founded in 1961, WISCONSIN LATVIAN, INC. is an NCUA-insured credit union based in MILWAUKEE, WI. As of December 31, 2017, the credit union had assets of $2.8 million.

WISCONSIN LATVIAN, INC.'s 438 members currently have $2.5 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.7 million.

Overall, Bankrate believes that, as of December 31, 2017, WISCONSIN LATVIAN, INC. exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, more capital is better.

WISCONSIN LATVIAN, INC. came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 12 out of a possible 30 points.

WISCONSIN LATVIAN, INC. appears to be weaker 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

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these types of assets means a credit union may eventually have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a future failure.

WISCONSIN LATVIAN, INC. scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

WISCONSIN LATVIAN, INC. scored 2 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

WISCONSIN LATVIAN, INC. had an earnings ratio of 0.00 percent in our test, better 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.