THE INSTITUTION'S SCORE
Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial stability, capital is important. When it comes to safety and soundness, the more capital, the better.
REDWOOD came in below the national average of 15.26 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.
REDWOOD had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.