Safe and Sound

CHARTWAY

Virginia Beach, VA
2
Star Rating
Virginia Beach, VA-based CHARTWAY is an NCUA-insured credit union started in 1959. Regulatory filings show the credit union having $2.17 billion in assets, as of June 30, 2017.

Thanks to the work of 430 full-time employees, the credit union currently holds loans and leases worth $1.68 billion. CHARTWAY's 182,422 members currently have $1.96 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CHARTWAY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is important. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, CHARTWAY received a score of 2 out of a possible 30 points, below the national average of 15.26.

CHARTWAY had a capitalization ratio of 5.00 percent in our test, lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble 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 unpaid loans.

Having extensive holdings of these types of assets suggests a credit union could have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

CHARTWAY fell short of the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

The credit union's ratio of problem assets was 7.00 percent in our test, identical to the national average.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, CHARTWAY scored 0 out of a possible 30, below the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, higher than the average for all credit unions, a sign 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.