Safe and Sound

SEARS SPOKANE EMPLOYEES

Spokane, WA
1
Star Rating
Started in 1948, SEARS SPOKANE EMPLOYEES is an NCUA-insured credit union headquartered in Spokane, WA. The credit union holds $4.2 million in assets, according to December 31, 2017, regulatory filings.

Members have $2.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.0 million. SEARS SPOKANE EMPLOYEES's 573 members currently have $3.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SEARS SPOKANE EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, SEARS SPOKANE EMPLOYEES received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

SEARS SPOKANE EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, SEARS SPOKANE EMPLOYEES scored 28 out of a possible 40 points, falling short of the national average of 38.09 points.

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, SEARS SPOKANE EMPLOYEES scored 0 out of a possible 30, coming in below the national average of 10.11.

One indication that SEARS SPOKANE EMPLOYEES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.