Safe and Sound

HORIZON UTAH

FARMINGTON, UT
3
Star Rating
HORIZON UTAH is an NCUA-insured credit union founded in 1956 and currently based in FARMINGTON, UT. The credit union has $136.7 million in assets, according to December 31, 2017, regulatory filings.

Members have $84.1 million on deposit tended by 36 full-time employees. With that footprint, the credit union currently holds loans and leases worth $84.1 million. HORIZON UTAH's 11,728 members currently have $121.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HORIZON UTAH exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. 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, more capital is preferred.

On our test to measure capital adequacy, HORIZON UTAH received a score of 12 out of a possible 30 points, below the national average of 15.65.

HORIZON UTAH had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets could eventually have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

HORIZON UTAH did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union'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 profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

HORIZON UTAH fell behind the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that the credit union is beating 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.