Safe and Sound

NORTHWEST COMMUNITY

Eugene, OR
4
Star Rating
NORTHWEST COMMUNITY is an NCUA-insured credit union founded in 1949 and currently headquartered in Eugene, OR. Regulatory filings show the credit union having $1.15 billion in assets, as of December 31, 2017.

With 285 full-time employees, the credit union has amassed loans and leases worth $1.02 billion. NORTHWEST COMMUNITY's 113,768 members currently have $1.02 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHWEST COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

NORTHWEST COMMUNITY 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 COMMUNITY's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

Having large numbers of these types of assets could eventually force a credit union to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a failure in the future.

NORTHWEST COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, NORTHWEST COMMUNITY scored 14 out of a possible 30, beating the national average of 10.11.

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