Safe and Sound

NORTHERN COLORADO

GREELEY, CO
4
Star Rating
Started in 1935, NORTHERN COLORADO is an NCUA-insured credit union based in GREELEY, CO. The credit union has assets of $54.4 million, according to December 31, 2017, regulatory filings.

Members have $37.0 million on deposit tended by 11 full-time employees. With that footprint, the credit union currently holds loans and leases worth $37.0 million. NORTHERN COLORADO's 3,504 members currently have $47.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHERN COLORADO exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial strength, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

NORTHERN COLORADO received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

NORTHERN COLORADO had a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test 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 kinds of assets means a credit union may eventually have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

NORTHERN COLORADO scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

NORTHERN COLORADO's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

NORTHERN COLORADO scored 10 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One sign that NORTHERN COLORADO is beating 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.