Safe and Sound

WENATCHEE VALLEY

Wenatchee, WA
3
Star Rating
Started in 1954, WENATCHEE VALLEY is an NCUA-insured credit union headquartered in Wenatchee, WA. As of December 31, 2017, the credit union held assets of $31.5 million.

Members have $18.2 million on deposit tended by 9 full-time employees. With that footprint, the credit union holds loans and leases worth $18.2 million. Its 4,398 members currently have $29.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WENATCHEE VALLEY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key 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 resilience, capital is useful. It works as a bulwark against losses and provides protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the more capital, the better.

WENATCHEE VALLEY fell short of the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

WENATCHEE VALLEY appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem 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 have to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, WENATCHEE VALLEY scored 40 out of a possible 40 points, above the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

WENATCHEE VALLEY underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

WENATCHEE VALLEY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.