Safe and Sound

U.P. CONNECTION

OMAHA, NE
4
Star Rating
Started in 1940, U.P. CONNECTION is an NCUA-insured credit union based in OMAHA, NE. Regulatory filings show the credit union having $33.5 million in assets, as of December 31, 2017.

Members have $16.2 million on deposit tended by 10 full-time employees. With that footprint, the credit union holds loans and leases worth $16.2 million. U.P. CONNECTION's 3,820 members currently have $28.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U.P. CONNECTION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

U.P. CONNECTION racked up 18 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

U.P. CONNECTION's capitalization ratio of 18.00 percent in our test was better than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having lots of these kinds of assets could eventually force a credit union to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

U.P. CONNECTION did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

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

Earnings score

How successful a credit union is at earning money has an effect on 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 better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

U.P. CONNECTION scored 6 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

U.P. CONNECTION had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.