Safe and Sound

VALLEY ONE COMMUNITY

Steubenville, OH
4
Star Rating
Started in 1965, VALLEY ONE COMMUNITY is an NCUA-insured credit union headquartered in Steubenville, OH. Regulatory filings show the credit union having assets of $34.3 million, as of December 31, 2017.

Members have $9.6 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $9.6 million. Its 3,390 members currently have $31.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VALLEY ONE COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate U.S. 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 provides protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When looking at safety and soundness, the more capital, the better.

VALLEY ONE COMMUNITY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

VALLEY ONE COMMUNITY had a capitalization ratio of 10.00 percent in our test, 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's purpose is 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 extensive holdings of these kinds of assets means a credit union may have to use capital to cover losses, shrinking 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 interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

VALLEY ONE COMMUNITY scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled 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 affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, VALLEY ONE COMMUNITY scored 8 out of a possible 30, coming in below the national average of 10.11.

VALLEY ONE COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming 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.