Safe and Sound

WEST VIRGINIA CENTRAL

Parkersburg, WV
5
Star Rating
Parkersburg, WV-based WEST VIRGINIA CENTRAL is an NCUA-insured credit union started in 1969. Regulatory filings show the credit union having assets of $171.5 million, as of December 31, 2017.

Thanks to the work of 30 full-time employees, the credit union has amassed loans and leases worth $123.0 million. Its 17,019 members currently have $154.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEST VIRGINIA CENTRAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, WEST VIRGINIA CENTRAL received a score of 10 out of a possible 30 points, below the national average of 15.65.

WEST VIRGINIA CENTRAL had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union may have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

WEST VIRGINIA CENTRAL scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent 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 long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, WEST VIRGINIA CENTRAL scored 22 out of a possible 30, exceeding the national average of 10.11.

One sign that WEST VIRGINIA CENTRAL is beating 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.