Safe and Sound

UNIVERSITY OF VA COMMUNITY CU

Charlottesville, VA
4
Star Rating
UNIVERSITY OF VA COMMUNITY CU is a Charlottesville, VA-based, NCUA-insured credit union started in 1954. The credit union has assets of $913.8 million, according to December 31, 2017, regulatory filings.

Members have $444.7 million on deposit tended by 221 full-time employees. With that footprint, the credit union has amassed loans and leases worth $444.7 million. Its 70,532 members currently have $809.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIVERSITY OF VA COMMUNITY CU exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, more capital is preferred.

UNIVERSITY OF VA COMMUNITY CU fell below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 10 out of a possible 30 points.

UNIVERSITY OF VA COMMUNITY CU's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, UNIVERSITY OF VA COMMUNITY CU scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of UNIVERSITY OF VA COMMUNITY CU's total assets in our test, below 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 long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, UNIVERSITY OF VA COMMUNITY CU scored 14 out of a possible 30, exceeding the national average of 10.11.

One sign that the credit union is running ahead of 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.