Safe and Sound

BAYPORT CREDIT UNION

Newport News, VA
4
Star Rating
BAYPORT CREDIT UNION is an NCUA-insured credit union founded in 1928 and currently headquartered in Newport News, VA. Regulatory filings show the credit union having assets of $1.57 billion, as of June 30, 2017.

With 374 full-time employees, the credit union holds loans and leases worth $1.17 billion. Its 135,569 members currently have $1.32 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BAYPORT CREDIT UNION 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 important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that an institution's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

BAYPORT CREDIT UNION received a score of 14 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.26.

BAYPORT CREDIT UNION appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 11.00 percent in our test, less than the average for all credit unions.

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 problem assets, such as past-due mortgages.

Having a large number of these types of assets may eventually force a credit union 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 thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

BAYPORT CREDIT UNION scored 36 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.15.

BAYPORT CREDIT UNION's ratio of problem assets was 7.00 percent in our test, the same as the national average.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

BAYPORT CREDIT UNION scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.31.

One sign that BAYPORT CREDIT UNION is doing better than its peers in this area was its earnings ratio of 3.00 percent in our test, higher 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.