Safe and Sound

VACATIONLAND

Sandusky, OH
4
Star Rating
Sandusky, OH-based VACATIONLAND is an NCUA-insured credit union founded in 1956. The credit union holds assets of $215.5 million, according to June 30, 2017, regulatory filings.

With 72 full-time employees, the credit union currently holds loans and leases worth $135.7 million. VACATIONLAND's 18,472 members currently have $169.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, VACATIONLAND exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during times of financial instability for the credit union. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

VACATIONLAND received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.26.

VACATIONLAND had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having a large number of these types of assets suggests a credit union may eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a future failure.

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

Troubled assets made up 4.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making 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 tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, VACATIONLAND scored 10 out of a possible 30, below the national average of 10.31.

VACATIONLAND had an earnings ratio of 5.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.