Safe and Sound

KAIPERM NORTHWEST

PORTLAND, OR
5
Star Rating
KAIPERM NORTHWEST is an NCUA-insured credit union founded in 1971 and currently headquartered in PORTLAND, OR. The credit union has $79.9 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 12 full-time employees, the credit union has amassed loans and leases worth $39.7 million. Its 6,122 members currently have $70.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, KAIPERM NORTHWEST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is crucial. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

KAIPERM NORTHWEST received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.26.

KAIPERM NORTHWEST appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions.

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.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

KAIPERM NORTHWEST scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of troubled assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

KAIPERM NORTHWEST exceeded the national average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

The credit union had an earnings ratio of 10.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.