Safe and Sound

FIRST NRV

Radford, VA
4
Star Rating
Started in 1937, FIRST NRV is an NCUA-insured credit union based in Radford, VA. As of December 31, 2017, the credit union had assets of $21.0 million.

Thanks to the work of 6 full-time employees, the credit union has amassed loans and leases worth $10.3 million. FIRST NRV's 2,514 members currently have $19.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIRST NRV exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

FIRST NRV scored below the national average of 15.65 on our test to measure capital adequacy, racking up 6 out of a possible 30 points.

FIRST NRV had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets means a credit union could eventually have to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

FIRST NRV scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than 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 greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

FIRST NRV scored 14 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

One indication that FIRST NRV is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.