Safe and Sound

AVISTA CORP.

Spokane, WA
4
Star Rating
AVISTA CORP. is an NCUA-insured credit union started in 1934 and currently headquartered in Spokane, WA. Regulatory filings show the credit union having $65.9 million in assets, as of December 31, 2017.

Members have $43.4 million on deposit tended by 5 full-time employees. With that footprint, the credit union holds loans and leases worth $43.4 million. Its 3,754 members currently have $56.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AVISTA CORP. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, AVISTA CORP. scored 20 out of a possible 30 points, beating the national average of 15.65.

AVISTA CORP. appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets may eventually force a credit union to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, AVISTA CORP. scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

AVISTA CORP.'s ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to 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 buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, AVISTA CORP. scored 8 out of a possible 30, failing to reach the national average of 10.11.

AVISTA CORP. had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.