Safe and Sound

WASHINGTON GAS LIGHT

SPRINGFIELD, VA
4
Star Rating
Started in 1939, WASHINGTON GAS LIGHT is an NCUA-insured credit union headquartered in SPRINGFIELD, VA. As of December 31, 2017, the credit union held assets of $115.0 million.

Members have $54.9 million on deposit tended by 23 full-time employees. With that footprint, the credit union has amassed loans and leases worth $54.9 million. Its 8,353 members currently have $89.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WASHINGTON GAS LIGHT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a bulwark against losses and affords protection for members during times of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

WASHINGTON GAS LIGHT beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 18 out of a possible 30 points.

WASHINGTON GAS LIGHT had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

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

On Bankrate's test of asset quality, WASHINGTON GAS LIGHT scored 40 out of a possible 40 points, better than the national average of 38.09 points.

WASHINGTON GAS LIGHT's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

WASHINGTON GAS LIGHT underperformed the average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

WASHINGTON GAS LIGHT had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.