Safe and Sound

BRISTOL VA SCHOOL SYSTEM

Bristol, VA
5
Star Rating
BRISTOL VA SCHOOL SYSTEM is an NCUA-insured credit union founded in 1957 and currently headquartered in Bristol, VA. Regulatory filings show the credit union having assets of $247,840, as of December 31, 2017.

The credit union has amassed loans and leases worth $101,069. Its 200 members currently have $178,441 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BRISTOL VA SCHOOL SYSTEM exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It acts as a cushion against losses and as protection for members during periods of economic instability for the credit union. 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, BRISTOL VA SCHOOL SYSTEM racked up 30 out of a possible 30 points, beating the national average of 15.65.

BRISTOL VA SCHOOL SYSTEM's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it's stronger 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.

Having a large number of these types of assets could eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

BRISTOL VA SCHOOL SYSTEM exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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

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 address problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, BRISTOL VA SCHOOL SYSTEM scored 8 out of a possible 30, below the national average of 10.11.

BRISTOL VA SCHOOL SYSTEM had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.