Safe and Sound

OHIO VALLEY COMMUNITY

CLARINGTON, OH
4
Star Rating
OHIO VALLEY COMMUNITY is an NCUA-insured credit union founded in 1960 and currently based in CLARINGTON, OH. The credit union has assets of $138.8 million, according to June 30, 2017, regulatory filings.

Members have $77.8 million on deposit tended by 28 full-time employees. With that footprint, the credit union currently holds loans and leases worth $77.8 million. OHIO VALLEY COMMUNITY's 12,299 members currently have $127.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, OHIO VALLEY COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major 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 bulwark against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

OHIO VALLEY COMMUNITY fell below the national average of 15.26 on our test to measure capital adequacy, scoring 6 out of a possible 30 points.

OHIO VALLEY COMMUNITY had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it's on less solid financial footing 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 problem assets, such as unpaid loans.

Having a large number of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

OHIO VALLEY COMMUNITY beat out the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

OHIO VALLEY COMMUNITY's ratio of troubled assets was 3.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, OHIO VALLEY COMMUNITY scored 14 out of a possible 30, above the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming 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.