Safe and Sound

OHIO VALLEY

BATAVIA, OH
2
Star Rating
OHIO VALLEY is a BATAVIA, OH-based, NCUA-insured credit union started in 1977. Regulatory filings show the credit union having assets of $23.8 million, as of December 31, 2017.

With 7 full-time employees, the credit union currently holds loans and leases worth $17.3 million. OHIO VALLEY's 2,794 members currently have $21.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OHIO VALLEY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It works as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, OHIO VALLEY received a score of 8 out of a possible 30 points, less than the national average of 15.65.

OHIO VALLEY appears to be less well prepared for financial trouble 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

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

OHIO VALLEY scored 36 out of a possible 40 points on Bankrate's test of asset quality, falling short of 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, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

OHIO VALLEY fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

OHIO VALLEY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.