WHAT IS
SAFE AND SOUND?
When it comes to measuring a credit union's financial stability, capital is crucial. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, more capital is better.
ONE VISION received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.
ONE VISION appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions.
In this test, Bankrate tries to estimate the impact 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 a large number of these kinds of assets could eventually be required to use capital to absorb losses, decreasing 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 elevating the chances of a failure in the future.
On Bankrate's asset quality test, ONE VISION scored 40 out of a possible 40 points, above the national average of 38.09 points.
Troubled assets made up 0.00 percent of ONE VISION's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.
How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.
ONE VISION did below-average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.
One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.
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.
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.