Safe and Sound

TRI-CITIES COMMUNITY

KENNEWICK, WA
5
Star Rating
KENNEWICK, WA-based TRI-CITIES COMMUNITY is an NCUA-insured credit union founded in 1969. Regulatory filings show the credit union having assets of $39.3 million, as of December 31, 2017.

Thanks to the efforts of 14 full-time employees, the credit union holds loans and leases worth $28.8 million. TRI-CITIES COMMUNITY's 5,676 members currently have $33.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TRI-CITIES COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It acts as a cushion against losses and provides protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, more capital is better.

TRI-CITIES COMMUNITY fell short of the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

TRI-CITIES COMMUNITY appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

TRI-CITIES COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, TRI-CITIES COMMUNITY scored 20 out of a possible 30, beating out the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.