Safe and Sound

PETERSBURG FED REF CREDIT UNION INC

HOPEWELL, VA
4
Star Rating
HOPEWELL, VA-based PETERSBURG FED REF CREDIT UNION INC is an NCUA-insured credit union founded in 1951. As of December 31, 2017, the credit union held assets of $4.1 million.

The credit union currently holds loans and leases worth $2.3 million. Its 762 members currently have $3.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PETERSBURG FED REF CREDIT UNION INC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is crucial. It acts as a bulwark against losses and as protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, PETERSBURG FED REF CREDIT UNION INC achieved a score of 30 out of a possible 30 points, better than the national average of 15.65.

PETERSBURG FED REF CREDIT UNION INC had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these types of assets suggests a credit union may have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

PETERSBURG FED REF CREDIT UNION INC beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, PETERSBURG FED REF CREDIT UNION INC scored 0 out of a possible 30, less than the national average of 10.11.

PETERSBURG FED REF CREDIT UNION INC had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.