Safe and Sound

VALLEY 1ST COMMUNITY

MONESSEN, PA
5
Star Rating
MONESSEN, PA-based VALLEY 1ST COMMUNITY is an NCUA-insured credit union founded in 1935. The credit union has assets of $82.4 million, according to December 31, 2017, regulatory filings.

Members have $28.8 million on deposit tended by 18 full-time employees. With that footprint, the credit union holds loans and leases worth $28.8 million. VALLEY 1ST COMMUNITY's 10,507 members currently have $62.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VALLEY 1ST COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, VALLEY 1ST COMMUNITY achieved a score of 30 out of a possible 30 points, above the national average of 15.65.

VALLEY 1ST COMMUNITY appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, decreasing 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, pushing down earnings and elevating the risk of a future failure.

VALLEY 1ST COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

VALLEY 1ST COMMUNITY scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach 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, 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.