Safe and Sound

MOUNTAIN HERITAGE

PARKERSBURG, WV
4
Star Rating
PARKERSBURG, WV-based MOUNTAIN HERITAGE is an NCUA-insured credit union founded in 1958. Regulatory filings show the credit union having assets of $34.0 million, as of December 31, 2017.

Members have $29.5 million on deposit tended by 13 full-time employees. With that footprint, the credit union holds loans and leases worth $29.5 million. MOUNTAIN HERITAGE's 6,602 members currently have $29.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOUNTAIN HERITAGE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

MOUNTAIN HERITAGE came in below the national average of 15.65 on our test to measure capital adequacy, scoring 14 out of a possible 30 points.

MOUNTAIN HERITAGE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to estimate 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 unpaid loans.

Having lots of these types of assets may eventually require a credit union to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

MOUNTAIN HERITAGE fell below the national average of 38.09 on Bankrate's asset quality test, racking up 24 out of a possible 40 points .

Troubled assets made up 0.00 percent of MOUNTAIN HERITAGE's total assets 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 has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

MOUNTAIN HERITAGE scored 22 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.