Safe and Sound

HAMPTON ROADS CATHOLIC

VIRGINIA BEACH, VA
3
Star Rating
Started in 1966, HAMPTON ROADS CATHOLIC is an NCUA-insured credit union headquartered in VIRGINIA BEACH, VA. Regulatory filings show the credit union having $5.3 million in assets, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union has amassed loans and leases worth $1.9 million. HAMPTON ROADS CATHOLIC's 1,069 members currently have $4.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAMPTON ROADS CATHOLIC exhibited a generally satisfactory condition, earning 3 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 evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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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 a credit union's level of capital is a key measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

HAMPTON ROADS CATHOLIC finished below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

HAMPTON ROADS CATHOLIC had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, reducing 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, reducing earnings and increasing the risk of a future failure.

HAMPTON ROADS CATHOLIC did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem 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 profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's test of earnings, HAMPTON ROADS CATHOLIC scored 6 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.