Safe and Sound

VALLEY WIDE OF PA

TARENTUM, PA
4
Star Rating
Started in 1955, VALLEY WIDE OF PA is an NCUA-insured credit union based in TARENTUM, PA. As of December 31, 2017, the credit union had assets of $1.3 million.

The credit union currently holds loans and leases worth $893,893. VALLEY WIDE OF PA's 318 members currently have $1.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VALLEY WIDE OF PA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

VALLEY WIDE OF PA scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 30 out of a possible 30 points.

VALLEY WIDE OF PA's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's stronger than 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 troubled assets, such as past-due loans.

Having lots of these types of assets suggests a credit union may have to use capital to absorb losses, decreasing 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 failure in the future.

On Bankrate's test of asset quality, VALLEY WIDE OF PA scored 28 out of a possible 40 points, less than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath 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 safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

VALLEY WIDE OF PA scored 10 out of a possible 30 on Bankrate's test of earnings, less 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, suggesting that it's running ahead of 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.