Safe and Sound

UNITED NATIONS

Long Island Cit, NY
4
Star Rating
UNITED NATIONS is a Long Island Cit, NY-based, NCUA-insured credit union started in 1947. Regulatory filings show the credit union having assets of $4.95 billion, as of June 30, 2017.

Thanks to the efforts of 534 full-time employees, the credit union holds loans and leases worth $2.49 billion. Its 128,523 members currently have $4.44 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNITED NATIONS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is essential. It works as a bulwark against losses and provides protection for members during times of financial trouble for the credit union. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, UNITED NATIONS received a score of 10 out of a possible 30 points, coming in below the national average of 15.26.

UNITED NATIONS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, UNITED NATIONS scored 40 out of a possible 40 points, beating the national average of 38.15 points.

A below-average ratio of problem assets of 4.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

UNITED NATIONS exceeded the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One sign that the credit union is beating its peers in this area was its earnings ratio of 8.00 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.