Safe and Sound

DUPONT COMMUNITY

WAYNESBORO, VA
4
Star Rating
DUPONT COMMUNITY is an NCUA-insured credit union started in 1959 and currently headquartered in WAYNESBORO, VA. The credit union holds $1.13 billion in assets, according to June 30, 2017, regulatory filings.

With 281 full-time employees, the credit union currently holds loans and leases worth $853.9 million. DUPONT COMMUNITY's 88,977 members currently have $974.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DUPONT COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is essential. It works as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, more capital is preferred.

DUPONT COMMUNITY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.26.

DUPONT COMMUNITY's capitalization ratio of 9.00 percent in our test was worse than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

DUPONT COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.15.

A below-average ratio of problem assets of 5.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, DUPONT COMMUNITY scored 16 out of a possible 30, exceeding the national average of 10.31.

DUPONT COMMUNITY had an earnings ratio of 8.00 percent in our test, better than the average for all credit unions, suggesting 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.