Safe and Sound

GESA

Richland, WA
4
Star Rating
Richland, WA-based GESA is an NCUA-insured credit union founded in 1953. Regulatory filings show the credit union having $1.90 billion in assets, as of December 31, 2017.

Members have $1.57 billion on deposit tended by 438 full-time employees. With that footprint, the credit union holds loans and leases worth $1.57 billion. GESA's 156,034 members currently have $1.57 billion in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is crucial. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, GESA received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

GESA appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

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

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

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, GESA scored 16 out of a possible 30, exceeding the national average of 10.11.

GESA had an earnings ratio of 0.00 percent in our test, above 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.