Safe and Sound

OLD WEST

JOHN DAY, OR
3
Star Rating
Founded in 1957, OLD WEST is an NCUA-insured credit union based in JOHN DAY, OR. The credit union holds $166.6 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 61 full-time employees, the credit union currently holds loans and leases worth $114.7 million. OLD WEST's 12,054 members currently have $150.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, OLD WEST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It acts as a buffer against losses and provides protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, OLD WEST received a score of 10 out of a possible 30 points, falling short of the national average of 15.26.

OLD WEST had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, OLD WEST scored 36 out of a possible 40 points, falling short of the national average of 38.15 points.

A higher-than-average ratio of troubled assets of 13.00 percent in our test was a potential cause for concern for the credit union.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

OLD WEST scored 4 out of a possible 30 on Bankrate's earnings test, below the national average of 10.31.

OLD WEST had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with 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.