Safe and Sound

VIRGINIA CREDIT UNION, INC.,

Richmond, VA
4
Star Rating
VIRGINIA CREDIT UNION, INC., is a Richmond, VA-based, NCUA-insured credit union started in 1928. The credit union has assets of $3.49 billion, according to December 31, 2017, regulatory filings.

Members have $2.40 billion on deposit tended by 685 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.40 billion. VIRGINIA CREDIT UNION, INC.,'s 264,699 members currently have $2.82 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VIRGINIA CREDIT UNION, INC., exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. 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 affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, VIRGINIA CREDIT UNION, INC., received a score of 8 out of a possible 30 points, below the national average of 15.65.

VIRGINIA CREDIT UNION, INC., had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

Having lots of these kinds of assets suggests a credit union could have to use capital to absorb losses, decreasing 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 interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

VIRGINIA CREDIT UNION, INC., scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of VIRGINIA CREDIT UNION, INC.,'s total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, VIRGINIA CREDIT UNION, INC., scored 16 out of a possible 30, beating out the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.