Safe and Sound

VIRGINIA BEACH SCHOOLS

Virginia Beach, VA
2
Star Rating
VIRGINIA BEACH SCHOOLS is an NCUA-insured credit union started in 1960 and currently headquartered in Virginia Beach, VA. As of December 31, 2017, the credit union had assets of $94.8 million.

Thanks to the work of 30 full-time employees, the credit union currently holds loans and leases worth $37.0 million. Its 7,776 members currently have $88.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VIRGINIA BEACH SCHOOLS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

VIRGINIA BEACH SCHOOLS received a score of 4 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

VIRGINIA BEACH SCHOOLS had a capitalization ratio of 4.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets means a credit union may have to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

VIRGINIA BEACH SCHOOLS scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating 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

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

VIRGINIA BEACH SCHOOLS scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.