Safe and Sound

UNITED LOCAL

Fresno, CA
5
Star Rating
UNITED LOCAL is a Fresno, CA-based, NCUA-insured credit union started in 1953. Regulatory filings show the credit union having assets of $113.5 million, as of June 30, 2017.

Members have $82.7 million on deposit tended by 20 full-time employees. With that footprint, the credit union has amassed loans and leases worth $82.7 million. UNITED LOCAL's 10,463 members currently have $93.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNITED LOCAL 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 major 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

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

UNITED LOCAL exceeded the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, racking up 26 out of a possible 30 points.

UNITED LOCAL's capitalization ratio of 17.00 percent in our test was above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets may eventually have to use capital to cover losses, decreasing 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.

UNITED LOCAL exceeded the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

UNITED LOCAL's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

UNITED LOCAL scored 6 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.31.

One indication that the credit union is beating its peers in this area was its earnings ratio of 2.00 percent in our test, above 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.