Safe and Sound

MOUNTAIN WEST

BUTTE, MT
5
Star Rating
Founded in 1952, MOUNTAIN WEST is an NCUA-insured credit union headquartered in BUTTE, MT. As of June 30, 2017, the credit union had assets of $8.1 million.

Members have $4.5 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.5 million. MOUNTAIN WEST's 1,335 members currently have $5.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MOUNTAIN WEST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial resilience, capital is crucial. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, MOUNTAIN WEST racked up 30 out of a possible 30 points, beating out the national average of 15.26.

MOUNTAIN WEST's capitalization ratio of 27.00 percent in our test was better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

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

Troubled assets made up 1.00 percent of MOUNTAIN WEST's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

MOUNTAIN WEST scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

One sign that the credit union is beating its peers in this area was its earnings ratio of 4.00 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.