Safe and Sound

NW PRIORITY

PORTLAND, OR
4
Star Rating
PORTLAND, OR-based NW PRIORITY is an NCUA-insured credit union started in 1928. Regulatory filings show the credit union having $253.2 million in assets, as of June 30, 2017.

With 40 full-time employees, the credit union has amassed loans and leases worth $89.6 million. Its 16,255 members currently have $222.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NW PRIORITY exhibited a good condition, earning 4 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?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, NW PRIORITY received a score of 14 out of a possible 30 points, lower than the national average of 15.26.

NW PRIORITY's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking its buffer of equity. 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 future failure.

NW PRIORITY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.15.

A below-average ratio of troubled assets of 2.00 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 earning money 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, potentially making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

NW PRIORITY beat the national average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 6.00 percent in our test, above 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.