Safe and Sound

SOLARITY

YAKIMA, WA
4
Star Rating
SOLARITY is an NCUA-insured credit union founded in 1951 and currently headquartered in YAKIMA, WA. As of June 30, 2017, the credit union held assets of $725.2 million.

With 155 full-time employees, the credit union holds loans and leases worth $530.6 million. SOLARITY's 55,829 members currently have $527.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SOLARITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the higher the capital, the better.

SOLARITY exceeded the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, scoring 16 out of a possible 30 points.

SOLARITY had a capitalization ratio of 13.00 percent in our test, the same as the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a failure in the future.

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

SOLARITY's ratio of troubled assets was 3.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

SOLARITY scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.31.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 2.00 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.