Safe and Sound

JEMEZ VALLEY

JEMEZ SPRINGS, NM
4
Star Rating
JEMEZ SPRINGS, NM-based JEMEZ VALLEY is an NCUA-insured credit union founded in 1966. The credit union has $23.1 million in assets, according to December 31, 2017, regulatory filings.

With 9 full-time employees, the credit union holds loans and leases worth $12.9 million. JEMEZ VALLEY's 1,661 members currently have $19.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JEMEZ VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial resilience, capital is important. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, JEMEZ VALLEY racked up 18 out of a possible 30 points, beating out the national average of 15.65.

JEMEZ VALLEY's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

JEMEZ VALLEY fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

JEMEZ VALLEY's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

JEMEZ VALLEY scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that JEMEZ VALLEY is doing better than 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.