Safe and Sound

MILE HIGH

BUTTE, MT
4
Star Rating
BUTTE, MT-based MILE HIGH is an NCUA-insured credit union founded in 1936. Regulatory filings show the credit union having $22.4 million in assets, as of December 31, 2017.

Thanks to the work of 5 full-time employees, the credit union has amassed loans and leases worth $8.2 million. MILE HIGH's 2,033 members currently have $19.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MILE HIGH exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is key. It works as a bulwark against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, MILE HIGH racked up 20 out of a possible 30 points, beating out the national average of 15.65.

MILE HIGH had a capitalization ratio of 20.00 percent in our test, above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test is intended to try to understand 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 past-due mortgages.

A credit union with a large number of these kinds of assets may eventually have to use capital to absorb losses, reducing 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 elevating the chances of a future failure.

On Bankrate's test of asset quality, MILE HIGH scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

MILE HIGH's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, MILE HIGH scored 4 out of a possible 30, below the national average of 10.11.

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