Safe and Sound

WESTEDGE

BELLINGHAM, WA
5
Star Rating
WESTEDGE is an NCUA-insured credit union founded in 1952 and currently headquartered in BELLINGHAM, WA. The credit union holds assets of $59.0 million, according to December 31, 2017, regulatory filings.

Members have $27.9 million on deposit tended by 13 full-time employees. With that footprint, the credit union has amassed loans and leases worth $27.9 million. Its 4,241 members currently have $50.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WESTEDGE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial resilience, capital is crucial. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, WESTEDGE racked up 20 out of a possible 30 points, beating out the national average of 15.65.

WESTEDGE's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, diminishing its equity buffer. 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, decreasing earnings and elevating the chances of a failure in the future.

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

The credit union'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

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, WESTEDGE scored 12 out of a possible 30, above 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, 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.