Safe and Sound

BEAR PAW

Havre, MT
3
Star Rating
BEAR PAW is a Havre, MT-based, NCUA-insured credit union dating back to 1942. The credit union holds assets of $117.8 million, according to December 31, 2017, regulatory filings.

With 35 full-time employees, the credit union holds loans and leases worth $55.4 million. BEAR PAW's 13,976 members currently have $107.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BEAR PAW exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members during times of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

BEAR PAW fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 8 out of a possible 30 points.

BEAR PAW had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with a large number of these types of assets may eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

BEAR PAW did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

BEAR PAW's ratio of troubled 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 earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, BEAR PAW scored 0 out of a possible 30, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.