Safe and Sound

CREDIT UNION OF DENVER

LAKEWOOD, CO
5
Star Rating
CREDIT UNION OF DENVER is a LAKEWOOD, CO-based, NCUA-insured credit union founded in 1931. As of December 31, 2017, the credit union had assets of $753.7 million.

Thanks to the work of 128 full-time employees, the credit union holds loans and leases worth $455.4 million. Its 58,862 members currently have $664.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF DENVER exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade American 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 buffer against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is important. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, CREDIT UNION OF DENVER received a score of 14 out of a possible 30 points, lower than the national average of 15.65.

CREDIT UNION OF DENVER's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets may eventually force a credit union to use capital to absorb losses, shrinking its buffer 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, diminishing earnings and elevating the chances of a future failure.

CREDIT UNION OF DENVER scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

CREDIT UNION OF DENVER did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.