Safe and Sound

UNIVERSITY

ORONO, ME
4
Star Rating
UNIVERSITY is an NCUA-insured credit union founded in 1967 and currently based in ORONO, ME. Regulatory filings show the credit union having assets of $281.0 million, as of June 30, 2017.

With 85 full-time employees, the credit union currently holds loans and leases worth $223.6 million. UNIVERSITY's 27,789 members currently have $232.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNIVERSITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important 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 bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

UNIVERSITY received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.26.

UNIVERSITY's capitalization ratio of 9.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing 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 unpaid mortgages.

Having large numbers of these types of assets means a credit union may have to use capital to cover losses, diminishing 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 lower earnings and potentially more risk of a failure in the future.

UNIVERSITY did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

UNIVERSITY's ratio of troubled assets was 7.00 percent in our test, identical to the national average.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

UNIVERSITY scored 10 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

UNIVERSITY had an earnings ratio of 5.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.