Safe and Sound

HIGHMARK

RAPID CITY, SD
3
Star Rating
RAPID CITY, SD-based HIGHMARK is an NCUA-insured credit union founded in 1940. Regulatory filings show the credit union having assets of $123.1 million, as of December 31, 2017.

Members have $106.3 million on deposit tended by 42 full-time employees. With that footprint, the credit union holds loans and leases worth $106.3 million. HIGHMARK's 9,708 members currently have $101.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HIGHMARK exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It acts as a cushion against losses and affords protection for members during times of economic instability for the credit union. From a safety and soundness perspective, more capital is preferred.

HIGHMARK finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 6 out of a possible 30 points.

HIGHMARK appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

A credit union with lots 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 no longer earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, HIGHMARK scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

A below-average ratio of troubled 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 making money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

HIGHMARK did above-average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One indication that HIGHMARK 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.