Safe and Sound

MT. ZION

ZION, IL
5
Star Rating
ZION, IL-based MT. ZION is an NCUA-insured credit union founded in 1987. As of December 31, 2017, the credit union held assets of $210,568.

The credit union has amassed loans and leases worth $59,261. MT. ZION's 243 members currently have $160,231 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MT. ZION exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is preferred.

MT. ZION exceeded the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

MT. ZION had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets suggests a credit union may eventually 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 interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

MT. ZION finished below the national average of 38.09 on Bankrate's asset quality test, racking up 24 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

MT. ZION beat the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

The credit union 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.