Safe and Sound

THE UNITED

Morgantown, WV
5
Star Rating
THE UNITED is a Morgantown, WV-based, NCUA-insured credit union founded in 1973. The credit union holds $91.0 million in assets, according to December 31, 2017, regulatory filings.

With 21 full-time employees, the credit union currently holds loans and leases worth $65.0 million. THE UNITED's 6,820 members currently have $57.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THE UNITED exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is valuable. It acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

THE UNITED beat out the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

THE UNITED's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having large numbers of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a failure in the future.

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

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

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, THE UNITED scored 18 out of a possible 30, better than the national average of 10.11.

One indication that the credit union is running ahead of 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.