Safe and Sound

NORTHWEST PLUS

Everett, WA
5
Star Rating
NORTHWEST PLUS is an Everett, WA-based, NCUA-insured credit union started in 1939. As of June 30, 2017, the credit union had assets of $187.9 million.

With 48 full-time employees, the credit union has amassed loans and leases worth $117.8 million. Its 17,569 members currently have $164.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NORTHWEST PLUS 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 important criteria Bankrate used to grade American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NORTHWEST PLUS received a score of 12 out of a possible 30 points, lower than the national average of 15.26.

NORTHWEST PLUS appears to be weaker than its peers in this area, with a capitalization ratio of 11.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate 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 lots of these kinds of assets could eventually be forced to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, NORTHWEST PLUS scored 40 out of a possible 40 points, above the national average of 38.15 points.

A lower-than-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

NORTHWEST PLUS scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.31.

One indication that the credit union is beating its peers in this area was its earnings ratio of 8.00 percent in our test, better 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.