Safe and Sound

OLD DOMINION UNIVERSITY CU INC.,

NORFOLK, VA
2
Star Rating
NORFOLK, VA-based OLD DOMINION UNIVERSITY CU INC., is an NCUA-insured credit union started in 1958. As of December 31, 2017, the credit union held assets of $29.7 million.

With 6 full-time employees, the credit union has amassed loans and leases worth $7.4 million. Its 3,132 members currently have $26.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OLD DOMINION UNIVERSITY CU INC., exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, OLD DOMINION UNIVERSITY CU INC., received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

OLD DOMINION UNIVERSITY CU INC., appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

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 unpaid mortgages.

A credit union with a large number of these types of assets may eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

OLD DOMINION UNIVERSITY CU INC., fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

Troubled assets made up 0.00 percent of OLD DOMINION UNIVERSITY CU INC.,'s total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

OLD DOMINION UNIVERSITY CU INC., scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that OLD DOMINION UNIVERSITY CU INC., is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.