Safe and Sound

PORTSMOUTH SCHOOLS

PORTSMOUTH, VA
3
Star Rating
PORTSMOUTH, VA-based PORTSMOUTH SCHOOLS is an NCUA-insured credit union started in 1942. The credit union holds assets of $2.1 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $728,204. Its 1,018 members currently have $1.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PORTSMOUTH SCHOOLS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial fortitude. It works as a bulwark against losses and provides protection for members during times of financial trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

PORTSMOUTH SCHOOLS exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

PORTSMOUTH SCHOOLS appears to be stronger than its peers, with a capitalization ratio of 18.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may 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 thus aren't earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, PORTSMOUTH SCHOOLS scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

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

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

PORTSMOUTH SCHOOLS scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One sign that PORTSMOUTH SCHOOLS is outperforming 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.