Safe and Sound

NORTHERN MONTANA HOSPITAL

Havre, MT
4
Star Rating
NORTHERN MONTANA HOSPITAL is a Havre, MT-based, NCUA-insured credit union that opened its doors in 1969. As of December 31, 2017, the credit union held assets of $775,098.

The credit union has amassed loans and leases worth $356,258. NORTHERN MONTANA HOSPITAL's 216 members currently have $689,815 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHERN MONTANA HOSPITAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial fortitude, capital is useful. When looking at safety and soundness, the higher the capital, the better.

NORTHERN MONTANA HOSPITAL came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 12 out of a possible 30 points.

NORTHERN MONTANA HOSPITAL's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having lots of these kinds of assets means a credit union could have to use capital to absorb losses, reducing its cushion of equity. 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 failure in the future.

NORTHERN MONTANA HOSPITAL scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets 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 affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

NORTHERN MONTANA HOSPITAL received below-average marks on Bankrate's test of earnings, achieving a score of 10 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, a sign that it's beating 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.