Safe and Sound

VALLEY BELL

CHARLESTON, WV
5
Star Rating
VALLEY BELL is a CHARLESTON, WV-based, NCUA-insured credit union dating back to 1939. Regulatory filings show the credit union having assets of $160,145, as of June 30, 2017.

The credit union currently holds loans and leases worth $76,494. Its 124 members currently have $96,173 in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, VALLEY BELL 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?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It acts as a buffer against losses and affords protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

VALLEY BELL achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

VALLEY BELL had a capitalization ratio of 45.00 percent in our test, higher than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended 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 lots of these kinds of assets means a credit union could eventually have to use capital to absorb losses, diminishing 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

VALLEY BELL came in below the national average of 38.15 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

VALLEY BELL's ratio of troubled assets was 16.00 percent in our test, greater than the national average and something to keep an eye on.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

VALLEY BELL scored 26 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.31.

One sign that the credit union is beating its peers in this area was its earnings ratio of 18.00 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.