THE INSTITUTION'S SCORE
Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial strength, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.
On our test to measure the adequacy of a credit union's capital, NORTHWEST received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.
NORTHWEST's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.