Safe and Sound

DENVER COMMUNITY

Denver, CO
4
Star Rating
Denver, CO-based DENVER COMMUNITY is an NCUA-insured credit union started in 1934. Regulatory filings show the credit union having $320.5 million in assets, as of December 31, 2017.

With 84 full-time employees, the credit union has amassed loans and leases worth $217.5 million. DENVER COMMUNITY's 28,390 members currently have $268.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DENVER COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, more capital is preferred.

DENVER COMMUNITY scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

DENVER COMMUNITY's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, suggesting that it's stronger 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 problem assets, such as past-due loans.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

DENVER COMMUNITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

Troubled assets made up 0.00 percent of DENVER COMMUNITY's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

DENVER COMMUNITY fell behind the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

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