Safe and Sound

KAIPERM NORTHWEST

PORTLAND, OR
5
Star Rating
Founded in 1971, KAIPERM NORTHWEST is an NCUA-insured credit union based in PORTLAND, OR. As of December 31, 2017, the credit union held assets of $81.6 million.

With 12 full-time employees, the credit union holds loans and leases worth $42.4 million. Its 6,192 members currently have $70.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KAIPERM NORTHWEST exhibited a superior condition, earning a full 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 on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is important. When it comes to safety and soundness, more capital is better.

KAIPERM NORTHWEST fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 14 out of a possible 30 points.

KAIPERM NORTHWEST had a capitalization ratio of 14.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

KAIPERM NORTHWEST did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

KAIPERM NORTHWEST did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

KAIPERM NORTHWEST had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.