Safe and Sound

CREDIT UNION OF VERMONT

Rutland, VT
4
Star Rating
CREDIT UNION OF VERMONT is an NCUA-insured credit union started in 1958 and currently headquartered in Rutland, VT. Regulatory filings show the credit union having $46.2 million in assets, as of December 31, 2017.

Members have $31.6 million on deposit tended by 7 full-time employees. With that footprint, the credit union has amassed loans and leases worth $31.6 million. CREDIT UNION OF VERMONT's 3,010 members currently have $40.9 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

CREDIT UNION OF VERMONT fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

CREDIT UNION OF VERMONT's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

CREDIT UNION OF VERMONT exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

CREDIT UNION OF VERMONT scored 14 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One indication that the credit union 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.