Safe and Sound

MILES CITY

MILES CITY, MT
4
Star Rating
Started in 1952, MILES CITY is an NCUA-insured credit union headquartered in MILES CITY, MT. The credit union has $3.4 million in assets, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $1.6 million. MILES CITY's 474 members currently have $2.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MILES CITY 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 important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial strength, capital is important. From a safety and soundness perspective, the more capital, the better.

MILES CITY exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 24 out of a possible 30 points.

MILES CITY appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets suggests a credit union could have to use capital to absorb losses, reducing its equity buffer. 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 future failure.

On Bankrate's asset quality test, MILES CITY scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

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

One sign that the credit union is outperforming 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.