Safe and Sound

PORTSMOUTH VA CITY EMPLOYEES

Portsmouth, VA
2
Star Rating
PORTSMOUTH VA CITY EMPLOYEES is a Portsmouth, VA-based, NCUA-insured credit union that opened its doors in 1965. The credit union holds assets of $1.7 million, according to June 30, 2017, regulatory filings.

Members have $281,167 on deposit tended by 2 full-time employees. With that footprint, the credit union holds loans and leases worth $281,167. PORTSMOUTH VA CITY EMPLOYEES's 751 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PORTSMOUTH VA CITY EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at 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 works as a buffer 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 fortitude, capital is essential. When it comes to safety and soundness, the more capital, the better.

PORTSMOUTH VA CITY EMPLOYEES received a score of 0 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.26.

PORTSMOUTH VA CITY EMPLOYEES had a capitalization ratio of 4.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, diminishing its equity cushion. 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, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, PORTSMOUTH VA CITY EMPLOYEES scored 32 out of a possible 40 points, below the national average of 38.15 points.

The credit union's ratio of problem assets was 17.00 percent in our test, greater than the national average and a potential area of concern.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, PORTSMOUTH VA CITY EMPLOYEES scored 0 out of a possible 30, coming in below the national average of 10.31.

PORTSMOUTH VA CITY EMPLOYEES had an earnings ratio of -180.00 percent in our test, below the average for all credit unions, a sign that it's underperforming 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.