Safe and Sound

VIRIVA COMMUNITY

WARMINSTER, PA
3
Star Rating
VIRIVA COMMUNITY is a WARMINSTER, PA-based, NCUA-insured credit union started in 1936. As of December 31, 2017, the credit union had assets of $66.9 million.

Thanks to the efforts of 23 full-time employees, the credit union holds loans and leases worth $30.2 million. VIRIVA COMMUNITY's 8,596 members currently have $54.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VIRIVA COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

VIRIVA COMMUNITY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

VIRIVA COMMUNITY had a capitalization ratio of 14.00 percent in our test, below the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

VIRIVA COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, below 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 affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, VIRIVA COMMUNITY scored 4 out of a possible 30, below the national average of 10.11.

One sign that VIRIVA COMMUNITY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.