Safe and Sound

SAN JUAN MOUNTAINS

MONTROSE, CO
3
Star Rating
Started in 1958, SAN JUAN MOUNTAINS is an NCUA-insured credit union headquartered in MONTROSE, CO. Regulatory filings show the credit union having assets of $33.9 million, as of December 31, 2017.

Thanks to the work of 9 full-time employees, the credit union holds loans and leases worth $20.1 million. SAN JUAN MOUNTAINS's 3,465 members currently have $31.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAN JUAN MOUNTAINS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the higher the capital, the better.

SAN JUAN MOUNTAINS fell below the national average of 15.65 on our test to measure capital adequacy, scoring 8 out of a possible 30 points.

SAN JUAN MOUNTAINS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand 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.

Having a large number of these kinds of assets suggests a credit union may have to use capital to cover losses, decreasing its equity cushion. 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 reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, SAN JUAN MOUNTAINS scored 32 out of a possible 40 points, less than the national average of 38.09 points.

A below-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

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

SAN JUAN MOUNTAINS scored 12 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.11.

One indication that SAN JUAN MOUNTAINS is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.