Safe and Sound

DIABLO VALLEY

CONCORD, CA
4
Star Rating
CONCORD, CA-based DIABLO VALLEY is an NCUA-insured credit union started in 1961. Regulatory filings show the credit union having $36.0 million in assets, as of December 31, 2017.

Thanks to the work of 8 full-time employees, the credit union currently holds loans and leases worth $21.2 million. Its 2,563 members currently have $32.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DIABLO VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

DIABLO VALLEY received a score of 8 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

DIABLO VALLEY appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets may 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 money, resulting in diminished earnings and potentially more risk of a failure in the future.

DIABLO VALLEY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

A lower-than-average ratio of troubled 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 earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, DIABLO VALLEY scored 10 out of a possible 30, less than the national average of 10.11.

One indication that DIABLO VALLEY 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.