Safe and Sound

EASTERN UTAH COMMUNITY

Price, UT
4
Star Rating
Founded in 1968, EASTERN UTAH COMMUNITY is an NCUA-insured credit union based in Price, UT. As of December 31, 2017, the credit union held assets of $123.6 million.

Thanks to the work of 30 full-time employees, the credit union currently holds loans and leases worth $72.6 million. Its 11,682 members currently have $111.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EASTERN UTAH COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

EASTERN UTAH COMMUNITY received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

EASTERN UTAH COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect 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 kinds of assets suggests a credit union could eventually have to use capital to cover losses, diminishing its buffer of equity. 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.

EASTERN UTAH COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less 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 cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

EASTERN UTAH COMMUNITY received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One sign that EASTERN UTAH COMMUNITY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.