Safe and Sound

YELLOWSTONE

YELLOWSTONE NAT, WY
3
Star Rating
YELLOWSTONE NAT, WY-based YELLOWSTONE is an NCUA-insured credit union started in 1937. Regulatory filings show the credit union having assets of $4.5 million, as of December 31, 2017.

Members have $2.0 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.0 million. YELLOWSTONE's 694 members currently have $4.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, YELLOWSTONE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score 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 times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, YELLOWSTONE received a score of 4 out of a possible 30 points, falling short of the national average of 15.65.

YELLOWSTONE had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is 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.

Having large numbers of these kinds of assets suggests a credit union may have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a failure in the future.

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

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

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

The credit union had an earnings ratio of 0.00 percent in our test, higher 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.