Safe and Sound

UTILITY EMPLOYEES

ABERDEEN, WA
4
Star Rating
UTILITY EMPLOYEES is an ABERDEEN, WA-based, NCUA-insured credit union started in 1936. Regulatory filings show the credit union having assets of $3.5 million, as of December 31, 2017.

The credit union currently holds loans and leases worth $1.6 million. UTILITY EMPLOYEES's 448 members currently have $3.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UTILITY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It acts as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, more capital is better.

UTILITY EMPLOYEES exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 18 out of a possible 30 points.

UTILITY EMPLOYEES had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a future failure.

UTILITY EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

UTILITY EMPLOYEES scored 6 out of a possible 30 on Bankrate's earnings test, below 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.