Safe and Sound

WEST BRANCH VALLEY

WILLIAMSPORT, PA
4
Star Rating
WEST BRANCH VALLEY is a WILLIAMSPORT, PA-based, NCUA-insured credit union founded in 1952. Regulatory filings show the credit union having $36.6 million in assets, as of December 31, 2017.

Thanks to the efforts of 14 full-time employees, the credit union has amassed loans and leases worth $18.0 million. WEST BRANCH VALLEY's 5,159 members currently have $33.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEST BRANCH VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the more capital, the better.

WEST BRANCH VALLEY finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

WEST BRANCH VALLEY had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the risk of a failure in the future.

WEST BRANCH VALLEY did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

WEST BRANCH VALLEY scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.