Safe and Sound

HORIZON

MACON, MO
5
Star Rating
HORIZON is an NCUA-insured credit union founded in 1954 and currently headquartered in MACON, MO. Regulatory filings show the credit union having $31.0 million in assets, as of December 31, 2017.

Members have $17.3 million on deposit tended by 10 full-time employees. With that footprint, the credit union currently holds loans and leases worth $17.3 million. Its 3,484 members currently have $25.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HORIZON exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, HORIZON scored 22 out of a possible 30 points, above the national average of 15.65.

HORIZON had a capitalization ratio of 22.00 percent in our test, above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries 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.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

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

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

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

HORIZON scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

HORIZON had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.