Safe and Sound

W. VIRGINIA STATE CONVENTION

Hilltop, WV
2
Star Rating
W. VIRGINIA STATE CONVENTION is an NCUA-insured credit union founded in 1984 and currently headquartered in Hilltop, WV. Regulatory filings show the credit union having assets of $297,418, as of December 31, 2017.

Its 173 members currently have $276,544 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $38,216.

Overall, Bankrate believes that, as of December 31, 2017, W. VIRGINIA STATE CONVENTION 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 did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. 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.

W. VIRGINIA STATE CONVENTION received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

W. VIRGINIA STATE CONVENTION appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, W. VIRGINIA STATE CONVENTION scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

Troubled assets made up 0.00 percent of W. VIRGINIA STATE CONVENTION's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

W. VIRGINIA STATE CONVENTION scored 2 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

One sign that the credit union is doing better than 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.