Safe and Sound

VALLEY EDUCATORS

Alamosa, CO
4
Star Rating
Started in 1959, VALLEY EDUCATORS is an NCUA-insured credit union headquartered in Alamosa, CO. As of December 31, 2017, the credit union held assets of $5.2 million.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $3.3 million. Its 1,053 members currently have $4.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VALLEY EDUCATORS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

VALLEY EDUCATORS exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 16 out of a possible 30 points.

VALLEY EDUCATORS had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

This test's purpose is 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 unpaid loans.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, shrinking 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, diminishing earnings and increasing the chances of a failure in the future.

VALLEY EDUCATORS finished below the national average of 38.09 on Bankrate's asset quality test, racking up 24 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive 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. 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. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, VALLEY EDUCATORS scored 22 out of a possible 30, better than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating its peers in this area.

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.