Safe and Sound

TUSCALOOSA V A

Tuscaloosa, AL
3
Star Rating
TUSCALOOSA V A is an NCUA-insured credit union started in 1951 and currently headquartered in Tuscaloosa, AL. As of December 31, 2017, the credit union had assets of $38.4 million.

Members have $12.4 million on deposit tended by 13 full-time employees. With that footprint, the credit union holds loans and leases worth $12.4 million. Its 3,928 members currently have $33.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TUSCALOOSA V A exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, TUSCALOOSA V A received a score of 14 out of a possible 30 points, failing to reach the national average of 15.65.

TUSCALOOSA V A had a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union could have to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a future failure.

TUSCALOOSA V A fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

TUSCALOOSA V A's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

TUSCALOOSA V A scored 2 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.