Safe and Sound

U.P.S.

CINCINNATI, OH
4
Star Rating
Started in 0, U.P.S. is an NCUA-insured credit union headquartered in CINCINNATI, OH. The credit union has $3.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $1.8 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.8 million. Its 1,039 members currently have $3.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, U.P.S. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score American 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 provides protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial strength, capital is useful. From a safety and soundness perspective, the more capital, the better.

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

U.P.S. had a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets means a credit union could eventually have to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

U.P.S. 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 the credit union'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 profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

U.P.S. underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

U.P.S. had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's outperforming 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.