Safe and Sound

HAMPTON ROADS EDUC CREDIT UNION INC

HAMPTON, VA
2
Star Rating
HAMPTON ROADS EDUC CREDIT UNION INC is an NCUA-insured credit union founded in 1954 and currently based in HAMPTON, VA. The credit union holds $31.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $13.3 million on deposit tended by 12 full-time employees. With that footprint, the credit union currently holds loans and leases worth $13.3 million. Its 5,581 members currently have $29.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HAMPTON ROADS EDUC CREDIT UNION INC exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired 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 acts as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is useful. When it comes to safety and soundness, more capital is better.

HAMPTON ROADS EDUC CREDIT UNION INC received a score of 2 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

HAMPTON ROADS EDUC CREDIT UNION INC appears to be weaker than its peers in this area, with a capitalization ratio of 2.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a failure in the future.

HAMPTON ROADS EDUC CREDIT UNION INC scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

HAMPTON ROADS EDUC CREDIT UNION INC's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, HAMPTON ROADS EDUC CREDIT UNION INC scored 0 out of a possible 30, failing to reach the national average of 10.11.

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