Safe and Sound

U.P. CATHOLIC

MARQUETTE, MI
5
Star Rating
U.P. CATHOLIC is a MARQUETTE, MI-based, NCUA-insured credit union that opened its doors in 1953. The credit union holds $164.3 million in assets, according to December 31, 2017, regulatory filings.

Members have $91.0 million on deposit tended by 37 full-time employees. With that footprint, the credit union holds loans and leases worth $91.0 million. Its 12,550 members currently have $135.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U.P. CATHOLIC exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

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

U.P. CATHOLIC scored 22 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

U.P. CATHOLIC appears to be more resilient than its peers, with a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets suggests a credit union could have 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, pushing down earnings and increasing the risk of a future failure.

U.P. CATHOLIC 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

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing 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.

U.P. CATHOLIC outperformed the average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One indication that U.P. CATHOLIC 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.