Safe and Sound

STRAIT VIEW

PORT ANGELES, WA
5
Star Rating
PORT ANGELES, WA-based STRAIT VIEW is an NCUA-insured credit union started in 1939. Regulatory filings show the credit union having assets of $64.4 million, as of December 31, 2017.

Members have $30.1 million on deposit tended by 9 full-time employees. With that footprint, the credit union holds loans and leases worth $30.1 million. Its 7,724 members currently have $57.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STRAIT VIEW exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score American 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 strength, capital is useful. It acts as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

STRAIT VIEW fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

STRAIT VIEW appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 0.00 percent of STRAIT VIEW'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 may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

STRAIT VIEW outperformed the average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

STRAIT VIEW had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.