Safe and Sound

CREDIT UNION OF COLORADO, A

DENVER, CO
4
Star Rating
Started in 1934, CREDIT UNION OF COLORADO, A is an NCUA-insured credit union based in DENVER, CO. Regulatory filings show the credit union having $1.48 billion in assets, as of December 31, 2017.

With 320 full-time employees, the credit union currently holds loans and leases worth $885.4 million. CREDIT UNION OF COLORADO, A's 120,191 members currently have $1.30 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF COLORADO, A exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial strength. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the higher the capital, the better.

CREDIT UNION OF COLORADO, A scored below the national average of 15.65 on our test to measure capital adequacy, racking up 12 out of a possible 30 points.

CREDIT UNION OF COLORADO, A 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

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets means a credit union may have to use capital to absorb losses, cutting down on its buffer 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, decreasing earnings and increasing the risk of a failure in the future.

CREDIT UNION OF COLORADO, A scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out 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 greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

CREDIT UNION OF COLORADO, A scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

CREDIT UNION OF COLORADO, A had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.