Safe and Sound

THE PARTNERSHIP

Washington, DC
2
Star Rating
THE PARTNERSHIP is an NCUA-insured credit union started in 1935 and currently based in Washington, DC. Regulatory filings show the credit union having $153.4 million in assets, as of December 31, 2017.

Members have $95.9 million on deposit tended by 29 full-time employees. With that footprint, the credit union holds loans and leases worth $95.9 million. Its 10,081 members currently have $139.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THE PARTNERSHIP exhibited a below-average condition, earning 2 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 grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is useful. It acts as a cushion against losses and as protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is preferred.

THE PARTNERSHIP fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 6 out of a possible 30 points.

THE PARTNERSHIP had a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, decreasing 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 lower earnings and potentially more risk of a failure in the future.

THE PARTNERSHIP fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of THE PARTNERSHIP'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 earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, THE PARTNERSHIP scored 0 out of a possible 30, failing to reach the national average of 10.11.

One sign that THE PARTNERSHIP is running ahead of 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.