Safe and Sound

DESERT SAGE

Nampa, ID
3
Star Rating
Nampa, ID-based DESERT SAGE is an NCUA-insured credit union founded in 1953. Regulatory filings show the credit union having assets of $1.2 million, as of December 31, 2017.

DESERT SAGE's 409 members currently have $985,079 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $991,368.

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

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

DESERT SAGE scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 24 out of a possible 30 points.

DESERT SAGE appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, DESERT SAGE scored 32 out of a possible 40 points, less than the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

DESERT SAGE underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

DESERT SAGE had an earnings ratio of 0.00 percent in our test, better 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.