Safe and Sound

ST. MARY

Walsenburg, CO
4
Star Rating
Walsenburg, CO-based ST. MARY is an NCUA-insured credit union started in 1943. As of December 31, 2017, the credit union had assets of $9.5 million.

Members have $3.0 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.0 million. ST. MARY's 1,830 members currently have $7.9 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It works as a cushion against losses and affords protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

ST. MARY scored 24 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

ST. MARY had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, suggesting that it's stronger 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 troubled assets, such as past-due loans.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 0.00 percent of ST. MARY'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 earnings performance affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's test of earnings, ST. MARY scored 6 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.