Safe and Sound

ARLINGTON COMMUNITY

ARLINGTON, VA
4
Star Rating
ARLINGTON COMMUNITY is an NCUA-insured credit union started in 1951 and currently headquartered in ARLINGTON, VA. Regulatory filings show the credit union having assets of $294.1 million, as of December 31, 2017.

With 64 full-time employees, the credit union has amassed loans and leases worth $241.4 million. ARLINGTON COMMUNITY's 21,289 members currently have $236.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARLINGTON COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a key measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, ARLINGTON COMMUNITY received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

ARLINGTON COMMUNITY's capitalization ratio of 10.00 percent in our test was below 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's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

ARLINGTON COMMUNITY beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of ARLINGTON COMMUNITY's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, ARLINGTON COMMUNITY scored 18 out of a possible 30, better than the national average of 10.11.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.