Safe and Sound

UNITED ADVANTAGE NW

PORTLAND, OR
4
Star Rating
PORTLAND, OR-based UNITED ADVANTAGE NW is an NCUA-insured credit union started in 1955. Regulatory filings show the credit union having assets of $40.4 million, as of December 31, 2017.

Members have $29.5 million on deposit tended by 13 full-time employees. With that footprint, the credit union holds loans and leases worth $29.5 million. UNITED ADVANTAGE NW's 6,579 members currently have $36.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED ADVANTAGE NW exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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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 buffer against losses and affords protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, UNITED ADVANTAGE NW received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

UNITED ADVANTAGE NW had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid loans.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, UNITED ADVANTAGE NW scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than 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 buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, UNITED ADVANTAGE NW scored 14 out of a possible 30, better than the national average of 10.11.

UNITED ADVANTAGE NW had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating 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.