Safe and Sound

CHARTWAY

Virginia Beach, VA
2
Star Rating
Virginia Beach, VA-based CHARTWAY is an NCUA-insured credit union started in 1959. As of December 31, 2017, the credit union held assets of $2.15 billion.

Thanks to the efforts of 415 full-time employees, the credit union holds loans and leases worth $1.73 billion. CHARTWAY's 181,019 members currently have $1.93 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHARTWAY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

CHARTWAY came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 2 out of a possible 30 points.

CHARTWAY's capitalization ratio of 2.00 percent in our test was lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, CHARTWAY scored 36 out of a possible 40 points, less than the national average of 38.09 points.

A lower-than-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 buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

CHARTWAY scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One indication that CHARTWAY is beating 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.