Safe and Sound

MEADOW GOLD EMPLOYEES

Salt Lake City, UT
5
Star Rating
Founded in 1936, MEADOW GOLD EMPLOYEES is an NCUA-insured credit union based in Salt Lake City, UT. Regulatory filings show the credit union having $5.2 million in assets, as of December 31, 2017.

Members have $3.2 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $3.2 million. MEADOW GOLD EMPLOYEES's 585 members currently have $4.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEADOW GOLD EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major 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 works as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

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

MEADOW GOLD EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect 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 extensive holdings of these kinds of assets suggests a credit union may have to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are 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.

MEADOW GOLD EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, MEADOW GOLD EMPLOYEES scored 4 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.