Safe and Sound

STEEL VALLEY

CLEVELAND, OH
3
Star Rating
CLEVELAND, OH-based STEEL VALLEY is an NCUA-insured credit union founded in 1966. Regulatory filings show the credit union having $27.1 million in assets, as of June 30, 2017.

Members have $17.8 million on deposit tended by 11 full-time employees. With that footprint, the credit union currently holds loans and leases worth $17.8 million. Its 5,375 members currently have $24.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, STEEL VALLEY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

STEEL VALLEY received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

STEEL VALLEY's capitalization ratio of 9.00 percent in our test was lower than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be required to use capital to cover 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 future failure.

STEEL VALLEY scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.15.

A higher-than-average ratio of problem assets of 10.00 percent in our test was a potential area of concern for STEEL VALLEY.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

STEEL VALLEY scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.31.

One sign that the credit union is beating 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.