Safe and Sound

TACOMA NARROWS

RUSTON, WA
4
Star Rating
Founded in 1951, TACOMA NARROWS is an NCUA-insured credit union based in RUSTON, WA. The credit union has $7.9 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 3 full-time employees, the credit union holds loans and leases worth $3.5 million. TACOMA NARROWS's 912 members currently have $6.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TACOMA NARROWS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It works as a bulwark against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, TACOMA NARROWS scored 24 out of a possible 30 points, above the national average of 15.65.

TACOMA NARROWS had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets means a credit union could have to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the risk of a future failure.

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

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and 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 long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, TACOMA NARROWS scored 2 out of a possible 30, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.