Safe and Sound

SALEM VA MEDICAL CENTER

SALEM, VA
2
Star Rating
SALEM VA MEDICAL CENTER is a SALEM, VA-based, NCUA-insured credit union that opened its doors in 1936. As of December 31, 2017, the credit union held assets of $83.7 million.

Members have $52.3 million on deposit tended by 26 full-time employees. With that footprint, the credit union holds loans and leases worth $52.3 million. Its 10,500 members currently have $74.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SALEM VA MEDICAL CENTER exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

SALEM VA MEDICAL CENTER finished below the national average of 15.65 on our test to measure capital adequacy, scoring 4 out of a possible 30 points.

SALEM VA MEDICAL CENTER had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets suggests a credit union may have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a future failure.

SALEM VA MEDICAL CENTER scored 32 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

SALEM VA MEDICAL CENTER scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.