Safe and Sound

SAFEWAY

SPOKANE, WA
5
Star Rating
SPOKANE, WA-based SAFEWAY is an NCUA-insured credit union started in 1952. The credit union holds assets of $58.1 million, according to December 31, 2017, regulatory filings.

With 11 full-time employees, the credit union holds loans and leases worth $27.0 million. SAFEWAY's 4,438 members currently have $45.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SAFEWAY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It works as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the higher the capital, the better.

SAFEWAY did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

SAFEWAY had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the risk of a future failure.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

SAFEWAY did below-average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One indication that SAFEWAY 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.