Safe and Sound

AUGUSTA COUNTY

VERONA, VA
5
Star Rating
VERONA, VA-based AUGUSTA COUNTY is an NCUA-insured credit union founded in 1957. As of December 31, 2017, the credit union held assets of $23.7 million.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $9.0 million. AUGUSTA COUNTY's 2,658 members currently have $19.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AUGUSTA COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, AUGUSTA COUNTY achieved a score of 24 out of a possible 30 points, better than the national average of 15.65.

AUGUSTA COUNTY appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having lots of these kinds of assets suggests a credit union could have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the chances of a future failure.

AUGUSTA COUNTY scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

AUGUSTA COUNTY's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

AUGUSTA COUNTY did above-average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

One sign that AUGUSTA COUNTY is running ahead of 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.