Safe and Sound

ABNB

CHESAPEAKE, VA
3
Star Rating
Founded in 1960, ABNB is an NCUA-insured credit union based in Chesapeake, VA. The credit union holds $554.5 million in assets, according to December 31, 2017, regulatory filings.

Members have $411.9 million on deposit tended by 187 full-time employees. With that footprint, the credit union currently holds loans and leases worth $411.9 million. Its 57,661 members currently have $491.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ABNB exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, an institution's level of capital is a useful measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

ABNB received a score of 10 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

ABNB had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, ABNB scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to 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, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

ABNB scored 2 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One indication that ABNB is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.