Safe and Sound

DEER LODGE COUNTY SCHOOL EMP

Anaconda, MT
4
Star Rating
Anaconda, MT-based DEER LODGE COUNTY SCHOOL EMP is an NCUA-insured credit union started in 1956. As of December 31, 2017, the credit union held assets of $5.5 million.

The credit union has amassed loans and leases worth $1.7 million. Its 513 members currently have $5.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DEER LODGE COUNTY SCHOOL EMP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is crucial. From a safety and soundness perspective, more capital is better.

DEER LODGE COUNTY SCHOOL EMP received a score of 8 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

DEER LODGE COUNTY SCHOOL EMP's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets could eventually require a credit union to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

DEER LODGE COUNTY SCHOOL EMP beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

DEER LODGE COUNTY SCHOOL EMP scored 14 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

One sign that DEER LODGE COUNTY SCHOOL EMP is running ahead of 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.