Safe and Sound

VANTAGE WEST

TUCSON, AZ
5
Star Rating
VANTAGE WEST is a TUCSON, AZ-based, NCUA-insured credit union founded in 1955. The credit union holds $1.92 billion in assets, according to December 31, 2017, regulatory filings.

Members have $1.52 billion on deposit tended by 460 full-time employees. With that footprint, the credit union has amassed loans and leases worth $1.52 billion. Its 149,736 members currently have $1.52 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VANTAGE WEST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial stability, capital is key. When looking at safety and soundness, more capital is preferred.

VANTAGE WEST came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

VANTAGE WEST's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

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 a large number of these types of assets could eventually be required to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, VANTAGE WEST scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

VANTAGE WEST received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

VANTAGE WEST 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.