Safe and Sound

PUD

LONGVIEW, WA
4
Star Rating
Founded in 1941, PUD is an NCUA-insured credit union headquartered in LONGVIEW, WA. As of December 31, 2017, the credit union held assets of $7.9 million.

The credit union has amassed loans and leases worth $4.9 million. Its 755 members currently have $6.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It works as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, PUD achieved a score of 22 out of a possible 30 points, beating out the national average of 15.65.

PUD's capitalization ratio of 22.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a failure in the future.

PUD scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

PUD underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

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 outperforming 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.