Safe and Sound

UNITED NORTHWEST

NORTON, KS
5
Star Rating
Founded in 1949, UNITED NORTHWEST is an NCUA-insured credit union based in NORTON, KS. As of June 30, 2017, the credit union had assets of $38.8 million.

With 12 full-time employees, the credit union currently holds loans and leases worth $20.3 million. Its 2,502 members currently have $32.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNITED NORTHWEST exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score 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 works as a cushion against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, more capital is better.

UNITED NORTHWEST achieved a score of 22 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

UNITED NORTHWEST appears to be on more solid financial footing than its peers, with a capitalization ratio of 16.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings 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 interest for the credit union, pushing down earnings and increasing the chances of a future failure.

UNITED NORTHWEST exceeded the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

UNITED NORTHWEST's ratio of problem assets was 3.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

UNITED NORTHWEST did below-average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

UNITED NORTHWEST had an earnings ratio of 4.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.