Safe and Sound

M M EMPLOYEES

MISSOULA, MT
3
Star Rating
M M EMPLOYEES is a MISSOULA, MT-based, NCUA-insured credit union founded in 1937. As of December 31, 2017, the credit union had assets of $1.2 million.

The credit union currently holds loans and leases worth $862,653. M M EMPLOYEES's 450 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, M M EMPLOYEES 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 faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is useful. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, M M EMPLOYEES received a score of 12 out of a possible 30 points, lower than the national average of 15.65.

M M EMPLOYEES had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid 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 means a credit union may eventually have to use capital to absorb losses, decreasing 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, diminishing earnings and increasing the chances of a future failure.

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

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

M M EMPLOYEES did below-average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.