Safe and Sound

GESA

Richland, WA
4
Star Rating
GESA is an NCUA-insured credit union started in 1953 and currently headquartered in Richland, WA. The credit union holds assets of $1.83 billion, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 420 full-time employees, the credit union currently holds loans and leases worth $1.49 billion. GESA's 151,517 members currently have $1.53 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GESA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is preferred.

GESA fell below the national average of 15.26 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

GESA appears to be weaker than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to cover losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

GESA did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 4.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

GESA scored 16 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.31.

GESA had an earnings ratio of 8.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.