Safe and Sound

MEMBERS CHOICE WV

Charleston, WV
5
Star Rating
MEMBERS CHOICE WV is an NCUA-insured credit union founded in 1942 and currently based in Charleston, WV. Regulatory filings show the credit union having assets of $82.3 million, as of December 31, 2017.

Thanks to the efforts of 14 full-time employees, the credit union currently holds loans and leases worth $29.2 million. MEMBERS CHOICE WV's 6,928 members currently have $66.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS CHOICE WV exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

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

MEMBERS CHOICE WV scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 30 out of a possible 30 points.

MEMBERS CHOICE WV had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand 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 past-due mortgages.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

MEMBERS CHOICE WV scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

MEMBERS CHOICE WV's ratio of problem assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

MEMBERS CHOICE WV scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

MEMBERS CHOICE WV had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.