Safe and Sound

ENCHANTED MOUNTAINS

ALLEGANY, NY
3
Star Rating
Started in 1953, ENCHANTED MOUNTAINS is an NCUA-insured credit union based in ALLEGANY, NY. As of December 31, 2017, the credit union held assets of $12.8 million.

With 4 full-time employees, the credit union has amassed loans and leases worth $4.8 million. Its 1,166 members currently have $11.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ENCHANTED MOUNTAINS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

ENCHANTED MOUNTAINS came in below the national average of 15.65 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

ENCHANTED MOUNTAINS's capitalization ratio of 8.00 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

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number 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 depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, ENCHANTED MOUNTAINS scored 40 out of a possible 40 points, above the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

ENCHANTED MOUNTAINS scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One sign that ENCHANTED MOUNTAINS 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.