Safe and Sound

UNIVERSAL CITY STUDIOS

Burbank, CA
4
Star Rating
Burbank, CA-based UNIVERSAL CITY STUDIOS is an NCUA-insured credit union founded in 1927. Regulatory filings show the credit union having $72.8 million in assets, as of June 30, 2017.

Thanks to the efforts of 13 full-time employees, the credit union has amassed loans and leases worth $44.7 million. Its 5,765 members currently have $63.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNIVERSAL CITY STUDIOS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during periods of economic instability for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, UNIVERSAL CITY STUDIOS received a score of 6 out of a possible 30 points, falling short of the national average of 15.26.

UNIVERSAL CITY STUDIOS's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually have to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

UNIVERSAL CITY STUDIOS scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.15.

The credit union's ratio of problem assets was 1.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. 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 times of trouble. Conversely, losses diminish a credit union's ability to do those things.

UNIVERSAL CITY STUDIOS underperformed the average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 5.00 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.