Safe and Sound

UNIFY FINANCIAL

TORRANCE, CA
3
Star Rating
UNIFY FINANCIAL is a TORRANCE, CA-based, NCUA-insured credit union dating back to 1963. The credit union holds $2.75 billion in assets, according to June 30, 2017, regulatory filings.

With 630 full-time employees, the credit union holds loans and leases worth $1.93 billion. UNIFY FINANCIAL's 226,469 members currently have $2.39 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNIFY FINANCIAL exhibited a generally satisfactory condition, earning 3 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 buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a useful measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

UNIFY FINANCIAL received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.26.

UNIFY FINANCIAL had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, diminishing its equity cushion. 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, resulting in reduced earnings and potentially more risk of a failure in the future.

UNIFY FINANCIAL scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.

UNIFY FINANCIAL's ratio of troubled assets was 7.00 percent in our test, the same as the national average.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

UNIFY FINANCIAL received below-average marks on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that UNIFY FINANCIAL is lagging behind its peers in this area was its earnings ratio of 0.00 percent in our test, below 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.