Safe and Sound

STATE HIGHWAY

YAKIMA, WA
5
Star Rating
STATE HIGHWAY is a YAKIMA, WA-based, NCUA-insured credit union that opened its doors in 1938. As of December 31, 2017, the credit union had assets of $26.7 million.

With 4 full-time employees, the credit union currently holds loans and leases worth $14.6 million. STATE HIGHWAY's 1,618 members currently have $22.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STATE HIGHWAY 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 key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, STATE HIGHWAY scored 26 out of a possible 30 points, beating the national average of 15.65.

STATE HIGHWAY had a capitalization ratio of 26.00 percent in our test, above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

STATE HIGHWAY beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of STATE HIGHWAY's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, STATE HIGHWAY scored 4 out of a possible 30, less than the national average of 10.11.

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 beating 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.