Safe and Sound

NORTHWEST CHRISTIAN

NAMPA, ID
4
Star Rating
NORTHWEST CHRISTIAN is a NAMPA, ID-based, NCUA-insured credit union started in 1954. Regulatory filings show the credit union having $57.8 million in assets, as of December 31, 2017.

With 14 full-time employees, the credit union holds loans and leases worth $26.4 million. NORTHWEST CHRISTIAN's 5,559 members currently have $51.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHWEST CHRISTIAN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown 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

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial stability, capital is useful. When it comes to safety and soundness, the more capital, the better.

NORTHWEST CHRISTIAN received a score of 10 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

NORTHWEST CHRISTIAN's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

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

The credit union's ratio of troubled assets was 0.00 percent 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 long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

NORTHWEST CHRISTIAN outperformed the average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 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.