Safe and Sound

PARTNER COLORADO

ARVADA, CO
4
Star Rating
PARTNER COLORADO is an ARVADA, CO-based, NCUA-insured credit union that opened its doors in 1931. The credit union has $352.4 million in assets, according to December 31, 2017, regulatory filings.

Members have $249.1 million on deposit tended by 100 full-time employees. With that footprint, the credit union holds loans and leases worth $249.1 million. PARTNER COLORADO's 32,156 members currently have $310.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PARTNER COLORADO exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is valuable. It acts as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, more capital is preferred.

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

PARTNER COLORADO's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

PARTNER COLORADO did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of PARTNER COLORADO's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

PARTNER COLORADO scored 14 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One indication that PARTNER COLORADO is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.