Safe and Sound

PUGET SOUND COOPERATIVE

Bellevue, WA
5
Star Rating
Bellevue, WA-based PUGET SOUND COOPERATIVE is an NCUA-insured credit union founded in 1936. Regulatory filings show the credit union having assets of $126.3 million, as of December 31, 2017.

Members have $107.3 million on deposit tended by 25 full-time employees. With that footprint, the credit union holds loans and leases worth $107.3 million. Its 14,030 members currently have $105.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUGET SOUND COOPERATIVE 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 key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial fortitude. It acts as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is better.

PUGET SOUND COOPERATIVE fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

PUGET SOUND COOPERATIVE appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, cutting down on 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 money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, PUGET SOUND COOPERATIVE scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of PUGET SOUND COOPERATIVE's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

PUGET SOUND COOPERATIVE scored 22 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

One sign that PUGET SOUND COOPERATIVE is beating 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.