Safe and Sound

VERMILLION

VERMILLION, SD
4
Star Rating
VERMILLION is an NCUA-insured credit union started in 1959 and currently based in VERMILLION, SD. The credit union holds assets of $17.0 million, according to December 31, 2017, regulatory filings.

With 6 full-time employees, the credit union has amassed loans and leases worth $9.1 million. VERMILLION's 2,422 members currently have $14.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VERMILLION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a buffer against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, VERMILLION achieved a score of 16 out of a possible 30 points, better than the national average of 15.65.

VERMILLION's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a future failure.

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

VERMILLION's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

VERMILLION did below-average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

VERMILLION had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.