Safe and Sound

The Trust Company of Virginia

Richmond, VA
5
Star Rating
Richmond, VA-based The Trust Company of Virginia is an FDIC-insured bank started in 2008. As of June 30, 2017, the bank had equity of $7.4 million on $8,343,000 in assets.

With 39 full-time employees, the bank has amassed loans and leases worth $0, including real estate loans of $0. U.S. bank customers currently have $500,000 in deposits with the bank.

Overall, Bankrate believes that, as of June 30, 2017, The Trust Company of Virginia exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the bank faired on the three important criteria Bankrate used to grade American banks on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for accountholders during times of financial trouble for the bank. Therefore, when it comes to measuring an a bank's financial stability, capital is useful. When looking at safety and soundness, the higher the capital, the better.
The Trust Company of Virginia exceeded the national average of 13.38 points on our test to measure the adequacy of a bank's capital, racking up 30 out of a possible 30 points.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. The Trust Company of Virginia's Tier 1 capital ratio was 192.85 percent, higher than the 6 percent level regulators consider adequate, and higher than the national average of 25.16 percent. The higher the capital ratio, the better the bank will be able to stand up to financial challenges.

Overall, The Trust Company of Virginia held equity amounting to 88.92 percent of its assets, which exceeded the national average of 12.10 percent.

Asset Quality Score

This test's purpose is to estimate how the bank's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having lots of these types of assets suggests a bank could eventually have to use capital to cover losses, diminishing its cushion of equity. 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.

The Trust Company of Virginia scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 37.62.

The percentage of problem assets a bank holds compared to its total assets is a handy indicator of asset quality.

Banks keep a reserve known as an "allowance for loan and lease losses" to deal with problem assets . The size of that reserve can be a helpful indicator when evaluating a bank's ability to manage troubled assets, especially when compared to the total amount of problem loans. Unfortunately, the FDIC did not provide information on The Trust Company of Virginia's loan loss allowance in its most recent filings.

Earnings score

How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, reduce a bank's ability to do those things.

The Trust Company of Virginia did above-average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.

Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important measure of a bank's earnings. The most recent annualized quarterly return on equity for The Trust Company of Virginia was 12.29 percent, above the national average of 9.28 percent.

The bank recorded net income of $480,000 on total equity of $7.4 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 10.90 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.

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.