Safe and Sound

WATERFRONT

Seattle, WA
4
Star Rating
WATERFRONT is a Seattle, WA-based, NCUA-insured credit union founded in 1964. As of December 31, 2017, the credit union held assets of $65.2 million.

Thanks to the work of 13 full-time employees, the credit union holds loans and leases worth $34.5 million. Its 6,268 members currently have $59.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WATERFRONT 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 major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, WATERFRONT received a score of 6 out of a possible 30 points, failing to reach the national average of 15.65.

WATERFRONT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, reducing 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 money, reducing earnings and increasing the risk of a future failure.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, WATERFRONT scored 22 out of a possible 30, above the national average of 10.11.

One sign that WATERFRONT is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.