Safe and Sound

TRANSWEST

SALT LAKE CITY, UT
4
Star Rating
Founded in 1985, TRANSWEST is an NCUA-insured credit union headquartered in SALT LAKE CITY, UT. As of December 31, 2017, the credit union had assets of $135.3 million.

Members have $103.4 million on deposit tended by 36 full-time employees. With that footprint, the credit union currently holds loans and leases worth $103.4 million. Its 12,098 members currently have $122.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRANSWEST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It works as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, TRANSWEST received a score of 8 out of a possible 30 points, lower than the national average of 15.65.

TRANSWEST's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, an indication that it's less well prepared for financial trouble 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 problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets suggests a credit union could have to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, TRANSWEST scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

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

TRANSWEST 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.