Safe and Sound

VERMONT STATE EMPLOYEES

Montpelier, VT
3
Star Rating
VERMONT STATE EMPLOYEES is a Montpelier, VT-based, NCUA-insured credit union started in 1947. As of December 31, 2017, the credit union had assets of $752.4 million.

Members have $634.3 million on deposit tended by 176 full-time employees. With that footprint, the credit union currently holds loans and leases worth $634.3 million. Its 63,888 members currently have $622.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VERMONT STATE EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis 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 an essential measurement of a credit union's financial strength. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, VERMONT STATE EMPLOYEES received a score of 8 out of a possible 30 points, below the national average of 15.65.

VERMONT STATE EMPLOYEES had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it's weaker 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.

Having extensive holdings of these types of assets means a credit union may eventually have to use capital to absorb losses, shrinking its equity buffer. 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 chances of a failure in the future.

VERMONT STATE EMPLOYEES scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

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

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding 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.

VERMONT STATE EMPLOYEES scored 10 out of a possible 30 on Bankrate's earnings test, coming in below 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 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.