Safe and Sound

AMERICAN UNITED FAMILY OF CREDIT UN

WEST JORDAN, UT
5
Star Rating
AMERICAN UNITED FAMILY OF CREDIT UN is a WEST JORDAN, UT-based, NCUA-insured credit union founded in 1952. As of June 30, 2017, the credit union had assets of $199.6 million.

With 75 full-time employees, the credit union has amassed loans and leases worth $159.5 million. Its 19,470 members currently have $167.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AMERICAN UNITED FAMILY OF CREDIT UN exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is essential. It works as a cushion against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

AMERICAN UNITED FAMILY OF CREDIT UN scored 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.26.

AMERICAN UNITED FAMILY OF CREDIT UN appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 14.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to absorb losses, diminishing 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 money, diminishing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, AMERICAN UNITED FAMILY OF CREDIT UN scored 36 out of a possible 40 points, less than the national average of 38.15 points.

Troubled assets made up 10.00 percent of AMERICAN UNITED FAMILY OF CREDIT UN's total assets in our test, exceeding the national average and something to keep an eye on.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

AMERICAN UNITED FAMILY OF CREDIT UN scored 28 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.31.

The credit union had an earnings ratio of 18.00 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.