Safe and Sound

MOUNTAIN AMERICA

West Jordan, UT
5
Star Rating
MOUNTAIN AMERICA is an NCUA-insured credit union started in 1936 and currently based in West Jordan, UT. Regulatory filings show the credit union having $6.75 billion in assets, as of June 30, 2017.

Members have $5.72 billion on deposit tended by 1,571 full-time employees. With that footprint, the credit union holds loans and leases worth $5.72 billion. MOUNTAIN AMERICA's 679,841 members currently have $5.40 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MOUNTAIN AMERICA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It works as a buffer against losses and as protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

MOUNTAIN AMERICA received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

MOUNTAIN AMERICA's capitalization ratio of 9.00 percent in our test was less than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, shrinking 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, resulting in lower earnings and potentially more risk of a future failure.

MOUNTAIN AMERICA scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

A lower-than-average ratio of problem assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

MOUNTAIN AMERICA scored 24 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.31.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 14.00 percent in our test, better 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.