Safe and Sound

PACIFIC NORTHWEST IRONWORKERS

Portland, OR
5
Star Rating
PACIFIC NORTHWEST IRONWORKERS is a Portland, OR-based, NCUA-insured credit union started in 1960. As of December 31, 2017, the credit union held assets of $27.0 million.

Members have $24.2 million on deposit tended by 7 full-time employees. With that footprint, the credit union holds loans and leases worth $24.2 million. Its 5,301 members currently have $19.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PACIFIC NORTHWEST IRONWORKERS 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.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is important. It acts as a bulwark against losses and as protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, more capital is better.

PACIFIC NORTHWEST IRONWORKERS received a score of 10 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

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

Asset Quality Score

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

A credit union with large numbers of these kinds of assets may eventually have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, PACIFIC NORTHWEST IRONWORKERS scored 32 out of a possible 40 points, coming in below the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

PACIFIC NORTHWEST IRONWORKERS scored 28 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that PACIFIC NORTHWEST IRONWORKERS is doing better than 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.