Safe and Sound

WOODSTONE

Federal Way, WA
4
Star Rating
WOODSTONE is an NCUA-insured credit union founded in 1941 and currently headquartered in Federal Way, WA. Regulatory filings show the credit union having $98.8 million in assets, as of June 30, 2017.

Members have $74.9 million on deposit tended by 22 full-time employees. With that footprint, the credit union currently holds loans and leases worth $74.9 million. Its 10,550 members currently have $84.7 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during times of financial trouble for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

WOODSTONE scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, achieving a score of 10 out of a possible 30 points.

WOODSTONE's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets could eventually force a credit union to use capital to absorb losses, decreasing its buffer of equity. 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.

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

WOODSTONE's ratio of problem assets was 3.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

WOODSTONE did above-average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One sign 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.