Safe and Sound

NORTH SANPETE

Fairview, UT
5
Star Rating
Founded in 1959, NORTH SANPETE is an NCUA-insured credit union based in Fairview, UT. The credit union holds $917,447 in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $792,189. Its 450 members currently have $692,675 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH SANPETE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

NORTH SANPETE scored above the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

NORTH SANPETE appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, above 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 past-due loans.

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

NORTH SANPETE scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.09.

A lower-than-average ratio of troubled 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 making 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, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

NORTH SANPETE scored 4 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

One sign that NORTH SANPETE is doing better than 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.