Safe and Sound

OUACHITA VALLEY HEALTH SYSTEM

CAMDEN, AR
1
Star Rating
CAMDEN, AR-based OUACHITA VALLEY HEALTH SYSTEM is an NCUA-insured credit union started in 1958. As of December 31, 2017, the credit union held assets of 37,551.\n\nOUACHITA VALLEY HEALTH SYSTEM\'s 256 members currently have 70,996 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth 10,993. \n\nOverall, Bankrate believes that, as of December 31, 2017, OUACHITA VALLEY HEALTH SYSTEM exhibited a significantly below-average condition, earning 1 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 score U.S. credit unions.\n

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial stability, capital is key. When it comes to safety and soundness, the higher the capital, the better.

OUACHITA VALLEY HEALTH SYSTEM scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 28 out of a possible 30 points.

OUACHITA VALLEY HEALTH SYSTEM appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

OUACHITA VALLEY HEALTH SYSTEM scored 32 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

Troubled assets made up 0.00 percent of OUACHITA VALLEY HEALTH SYSTEM's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

OUACHITA VALLEY HEALTH SYSTEM scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

OUACHITA VALLEY HEALTH SYSTEM had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.