Safe and Sound

NORTH WESTERN EMPLOYEES

COUNCIL BLUFFS, IA
5
Star Rating
COUNCIL BLUFFS, IA-based NORTH WESTERN EMPLOYEES is an NCUA-insured credit union started in 1941. As of June 30, 2017, the credit union had assets of $7.6 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $4.0 million. NORTH WESTERN EMPLOYEES's 1,220 members currently have $6.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NORTH WESTERN EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, more capital is preferred.

NORTH WESTERN EMPLOYEES scored 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

NORTH WESTERN EMPLOYEES's capitalization ratio of 19.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a future failure.

NORTH WESTERN EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.

The credit union's ratio of troubled assets was 3.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

NORTH WESTERN EMPLOYEES scored 10 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 4.00 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.