Safe and Sound

MONTANA HEALTH

Billings, MT
2
Star Rating
Billings, MT-based MONTANA HEALTH is an NCUA-insured credit union started in 1964. The credit union holds $29.6 million in assets, according to December 31, 2017, regulatory filings.

With 8 full-time employees, the credit union holds loans and leases worth $24.8 million. Its 3,177 members currently have $23.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MONTANA HEALTH exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during times of economic instability for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

MONTANA HEALTH came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 6 out of a possible 30 points.

MONTANA HEALTH had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, cutting down on its equity buffer. 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, reducing earnings and increasing the chances of a future failure.

MONTANA HEALTH scored 36 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects 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 better prepared to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, MONTANA HEALTH scored 0 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.