Safe and Sound

U.P. EMPLOYEES

NORTH LITTLE RO, AR
4
Star Rating
U.P. EMPLOYEES is an NCUA-insured credit union founded in 1952 and currently headquartered in NORTH LITTLE RO, AR. The credit union has assets of $4.0 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $1.9 million. U.P. EMPLOYEES's 1,118 members currently have $3.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U.P. EMPLOYEES 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 grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during times of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. When it comes to safety and soundness, more capital is better.

U.P. EMPLOYEES scored 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

U.P. EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

U.P. EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

Troubled assets made up 0.00 percent of U.P. EMPLOYEES's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, U.P. EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

One indication that U.P. EMPLOYEES 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.