Safe and Sound

C U P

Provo, UT
4
Star Rating
C U P is a Provo, UT-based, NCUA-insured credit union started in 1960. The credit union holds $6.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $5.2 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $5.2 million. C U P's 1,315 members currently have $5.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, C U P exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It acts as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, C U P scored 20 out of a possible 30 points, above the national average of 15.65.

C U P appears to be stronger than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a failure in the future.

C U P scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, C U P scored 4 out of a possible 30, failing to reach the national average of 10.11.

One indication that C U P is beating its peers in this area was its earnings ratio of 0.00 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.