Safe and Sound

VA HOSPITAL

LITTLE ROCK, AR
3
Star Rating
Founded in 1951, VA HOSPITAL is an NCUA-insured credit union based in LITTLE ROCK, AR. Regulatory filings show the credit union having $9.8 million in assets, as of December 31, 2017.

Members have $8.5 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $8.5 million. VA HOSPITAL's 2,012 members currently have $8.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VA HOSPITAL 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is an essential measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

VA HOSPITAL received a score of 10 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

VA HOSPITAL's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, VA HOSPITAL scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

VA HOSPITAL fell behind the national average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One sign that VA HOSPITAL 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.