Safe and Sound

ROANOKE VALLEY COMMUNITY

ROANOKE, VA
4
Star Rating
ROANOKE VALLEY COMMUNITY is a ROANOKE, VA-based, NCUA-insured credit union started in 1947. The credit union has assets of $76.0 million, according to December 31, 2017, regulatory filings.

With 15 full-time employees, the credit union has amassed loans and leases worth $33.8 million. Its 10,283 members currently have $67.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ROANOKE VALLEY COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, ROANOKE VALLEY COMMUNITY received a score of 12 out of a possible 30 points, lower than the national average of 15.65.

ROANOKE VALLEY COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to absorb losses, reducing 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 money, reducing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, ROANOKE VALLEY COMMUNITY scored 36 out of a possible 40 points, below the national average of 38.09 points.

ROANOKE VALLEY COMMUNITY's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

ROANOKE VALLEY COMMUNITY did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One sign that ROANOKE VALLEY COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.