Safe and Sound

GENERATIONS

OLYMPIA, WA
5
Star Rating
GENERATIONS is an NCUA-insured credit union started in 1939 and currently headquartered in OLYMPIA, WA. As of December 31, 2017, the credit union had assets of $33.2 million.

Members have $29.0 million on deposit tended by 8 full-time employees. With that footprint, the credit union currently holds loans and leases worth $29.0 million. Its 4,480 members currently have $29.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GENERATIONS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. When it comes to safety and soundness, the higher the capital, the better.

GENERATIONS received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

GENERATIONS had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having a large number of these types of assets means a credit union may have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, GENERATIONS scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less 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 earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

GENERATIONS outperformed the average on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.

GENERATIONS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.