Safe and Sound

MOUNTAIN GEM

NAMPA, ID
2
Star Rating
MOUNTAIN GEM is a NAMPA, ID-based, NCUA-insured credit union founded in 1956. Regulatory filings show the credit union having assets of $20.4 million, as of December 31, 2017.

Thanks to the efforts of 10 full-time employees, the credit union currently holds loans and leases worth $17.6 million. MOUNTAIN GEM's 3,261 members currently have $16.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOUNTAIN GEM exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

MOUNTAIN GEM came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 8 out of a possible 30 points.

MOUNTAIN GEM had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, decreasing 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 money, reducing earnings and elevating the chances of a future failure.

MOUNTAIN GEM scored 32 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

MOUNTAIN GEM's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

MOUNTAIN GEM underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

MOUNTAIN GEM had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.