Safe and Sound

PORTLAND LOCAL NO 8

Portland, OR
5
Star Rating
Started in 1954, PORTLAND LOCAL NO 8 is an NCUA-insured credit union headquartered in Portland, OR. Regulatory filings show the credit union having assets of $35.1 million, as of December 31, 2017.

Members have $19.4 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $19.4 million. PORTLAND LOCAL NO 8's 2,240 members currently have $31.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PORTLAND LOCAL NO 8 exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

PORTLAND LOCAL NO 8 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.

PORTLAND LOCAL NO 8 had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union may have to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a future failure.

PORTLAND LOCAL NO 8 came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 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 safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

PORTLAND LOCAL NO 8 scored 24 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

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, higher than 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.