Safe and Sound

U B C SOUTHERN COUNCIL INDUSTRIA WO

MINDEN, LA
5
Star Rating
Founded in 1975, U B C SOUTHERN COUNCIL INDUSTRIA WO is an NCUA-insured credit union based in MINDEN, LA. As of December 31, 2017, the credit union had assets of $731,890.

The credit union currently holds loans and leases worth $540,177. Its 405 members currently have $331,328 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U B C SOUTHERN COUNCIL INDUSTRIA WO 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is better.

U B C SOUTHERN COUNCIL INDUSTRIA WO exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 30 out of a possible 30 points.

U B C SOUTHERN COUNCIL INDUSTRIA WO appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking 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 money, decreasing earnings and increasing the risk of a failure in the future.

U B C SOUTHERN COUNCIL INDUSTRIA WO finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

U B C SOUTHERN COUNCIL INDUSTRIA WO's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money 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 deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

U B C SOUTHERN COUNCIL INDUSTRIA WO scored 8 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.